Yes - it's similar to looking at a tenants' income and credit information. 

Assumptions: Lowest Appraisal Loan INCOME AND RATE OF RETURN Purchase Price 154,900.00 Loan Amount 123,920.00 Down Payment 30,980.00 Estimated Annnual Gross Rents 15,540.00 Estimated Annual Equity Paydown 1,700.18 Estimated Annual Principal & Interest ($8,350.19) Estimated Annual Property Taxes ($3,000.00) Estimated Annual Homeowners Insurance ($746.78) Estimated Annual HOA Dues $0.00 Estimated Annual Management Fees ($1,877.75) Utility costs to be paid by landlord (if any) Annual $0.00 Lawn mainteannce costs to be paid by landlord (if any) Annual $0.00 Indirect Vacancy Allowance Annual ($) ($155.40) Repair Allowance Annual ($) ($621.60) Misc. bucket for costs per month Annual ($60.00) Estimated Annual Net Expenses ($14,811.72) SUMMARY OF RETURNS Estimated Annual Gross Income $2,428.46 Estimated Monthly Gross Income $202.37 Estimated Annual Gross ROI 7.84% ESTIMATE OF CASH FLOW Loan Amount 123,920.00 Interest Rate 5.40% Loan Term in Months 360 Estimated Principal & Interest ($695.85) Estimated Monthly Taxes ($250.00) Estimated Monthly Homeowners Insurance ($62.23) Estimated Monthly HOA Dues $0.00 Estimated Monthly - MISC ($69.75) Estimated Monthly Management Fees ($156.48) SUMMARY OF CASH FLOW Estimated Monthly Gross Cash Flow $60.69

In a perfect world, my investment strategies are as follows:1) Using FHA 3.5% or conventional 5%, house-hack MFHs in Los Angeles and get as close to breakeven as possible from rental income with a maximum monthly "loss" of $500.

Do I just make the distributions to each of us and then each of us reports it on our own returns as other income without an official form?

Is it enough to just get a signed lease for that rental income? 

Assuming you have good income/debt and good credit, you should be able to get another mortgage.

You separate the holding company for a number of reasons: rental income is taxed at a some of the lowest rates, and the risk of loss is different in character than that of running operations, its tax filing looks different (as a business) than a business that runs operations (deducting capital improvements, etc.), among others. 

Typical SFH lender guidelines allow for (75-80%) leverage on properties and consider your debt to income ratio. 

I have plenty of wealth in investment accounts to cover the purchase, but I'm trying to maximize my passive income, so I'd like to leverage a mortgage using my current income to pay for as much of the property as a I can.

If you keep track of mileage for income tax purposes you should get a PO Box as close to home as possible.