Under Contract: 6-Unit Corporate Lease (Sober Living) - Analyzing JV Structure

[Patrick Lismon]

"Hey BP Community,

I just got a stabilized 6-unit property in Dayton, OH, under LOI, and I'm finalizing the structure. It's a unique setup: 100% master-leased to a corporate tenant (Sober Living) for 3 years.

The Numbers:

• Purchase: ~$640k
• Tenant pays all utilities/maintenance (NNN-Lite).
• DSCR is strong (>1.35), so financing is straightforward.
• Projecting ~11% CoC return.

I'm planning to bring in a capital partner for the EMD/Down Payment ($185k total).

My Question for the group: For those who have done corporate-backed JV deals, do you typically stick to a straight 50/50 equity split, or do you offer a preferred return?