The main issue being that you don't have that in between buy and sell process, instead you rely on a contract to establish profit distribution.

It would really suck for me to have an unintentional distribution event.But that's just me.  

I can explain any of these in more detail as I used each of these techniques.

Distributions go out after all the expenses on the property have been paid. 

., accounting, distribution of profits, etc.), but it does not mean that the mortgages qualify as a real estate interest.  

From what I see, people dont plan for DTI or DCR calculations in advance with their tax returns or how they buy their properties so what happens is their acquisition strategy does not jive with their capital strategy (debt in this case) so their business is in constant funk with ups and downs or they end up having to use hard money and alternative financing techniques (JV's, lease options, etc).

Whereas in LLC, transferring asset is not taxable event, it just reduces partner’s basis in the partnership. 2)If you elect S-corp, and if ever wanted to draw let’s say $5000k from S-corp for personal use (vacation), you have to distribute the proportionate amount to all another partners of the S-corp too.

I actually do have a prescreening technique, but I think I may have been over the top with some of the questions and think I could have driven potentially qualified tenants away because I came off as too picky.

You shouldn't have to do a hard core salesmen closing technique to get a property under contract.You should also be clear with the seller that you will need to come to the house with different individuals for property evalutions, estimating repairs, and funding needs.  

If the whole deal is going to be worth $1,000,000 in five years (this is an example) you would both own $500k each.It sounds like you, or both of you are wanting to make sure that the property when sold down the road will be distributed evenly and there are no snags.