If the house is under your name. It's more complicated.
1.You need to transfer the title in the future. How much is the tax liability from the transition?
2.You have to report the rental business' passive activity gain or loss on your tax return. It will affect you tax rate. It's impossible for you two 亲兄弟，明算帐 for a long time.
3.The rental house' passive activity gain or loss depends on how much your downpayment.
4.The passive activity loss may not used to deduct your income if your income is higher than $100K(please confirm with latest IRS tax publication).Each years' loss will be accumulated and carry over to the next year or you sell the house.
If you use your brother's name. You are free of the issues above. But as an alien your brother need to pay higher rate for the rental income. I heard this recently, maybe 30% something.
