Structuring investment for Air BNB
Greetings, and thanks in advance for reading
We have recently gone into contract with a residential house that is commercially zoned in a small town with heavy tourist traffic. We plan on making three different Air BNB units, but it is currently set up for two. We would get a residential loan, and live in the biggest of the 3 units while rehabbing the other two, then focus on rehabbing main unit.
House itself is 425K
Down payment is 39K
Mortgage is 2100
We have a family member who is interested in being an investor, but are unsure how to structure deal, or if we really even want to partner. The family member is knowledgeable, but can be controlling. Having the extra money would make things a lot easier, but we are trying to keep as much cash flow in our pokiest as possible.
We currently have about 35K we could use as a down.
Estimated rehab costs 50K for all 3 units
Estimated monthly Air BNB income is 7500-9000
My question is what would be the best way to structure this deal. If we took the family members money, it would make things easier but how would we split percentages? We have two other Air BNB's as well that do quite well. If they were to come on we just do percentages on this house, or would we have them invest in the business itself?
The other options I have circulating in my head are; hard money lender, 203K, and HELOC on my current home.
Any thoughts on how to structure this are greatly appreciated