Structuring a Partnership for a Vacation Rental Property
Hello all, and thank you in advance for the feedback:
Background:
Rob and I have similar backgrounds managing vacation rental properties in Miami. We'd like to to buy a 5-bedroom home that was referred to us and manage it as a short-term rental property. The house doesn't need any improvement and it's legally zoned in a neighborhood that doesn't prohibit this. Rob and I are currently drafting an operating agreement so that we have clarity and accountability.
The Partnership:
Rob can only invest 30% of the initial investment capital required, and I can invest the remaining 70%. We will both split the property management responsibilities 50/50 for the life of the deal. What should the ownership breakdown or ratio for equity distributions look like for this deal?
Thanks again and I look forward to learning from you all.
Best,
Christian