Unique Rental Situation with Partner

[Dusty Register]

Hey Everyone,

Still relatively new here, but I'd like to think that I have a basic understanding of REI & the underlying math behind rental properties.

Situation:

My wife and I currently own a townhouse, but are looking for an investment property within 5 miles of our address.  We have another couple that has a limited amount of experience with Real Estate Investing, so we are looking to go in on a property together.  They would like to live in the investment property for the next year or so, while we all rehab the house together.  Ideally, we would put in $15,000 or so and increase the monthly rent by $100-$150.  After they move out, we would both manage the property and treat it as a buy-and-hold.

My question is regarding the actual division of ownership of the property. How would one typically begin the evaluation? If they are covering rehab costs and a bit of extra labor, would we cover the mortgage? We plan on forming an LLC and discussing with a lawyer and tax expert first, but I wanted to pose the question here.

Any advice would be much appreciated!!

Dusty