Three way split - 2 contributing downpayment 1 taking on mortgage

[Corine Haener]

I'm interested in getting feedback on this scenario:

Three people go in on a partnership on a rental property. 

Person A contributes $30K to downpayment

Person B contributes $40K to downpayment

Person C takes on a mortgage for $210K

An llc is created and each person has 1/3 ownership. Rental income is used to pay mortgage and other monthly expenses. The monthly profits from the rental are split evenly among the 3 people. Should there not be any rental income for one or more months, person C is responsible for paying the mortgage out of pocket and persons A  & B are not responsible for paying any portion of the mortgage.

Is it fair that person C gets an equal amount of the profits as persons A & B?

If this is not a fair split, how would you recommend it be split?

[Mike Cumbie]

Well person A gets a 75% discount on their buy in over person B. I would never want to be in position B. Why? To pay an extra 10K for the same exact return as A. As far as C they are sort of coming along for the ride and taking 1/3 profits. Assuming it is currently rented out. Since I don't know alot of specifics I think I would most likely want to be in position C, then A then B.

Just my thoughts and good luck