[+27% CoC] Buying two duplexes with a partner
I'm closing on two duplexes in Charlotte MSA in a great area (population & employment growth, close to downtown, etc.). Purchase price was $70k for each duplex with $3000 in renovations rolled into the loan. Similar properties are selling for ~$125,000 as-is.
My team sourced this deal off-market hence the $50k+ discount for each duplex. It's 100% occupied with tenants being there for 13+ years at severely under market rents. Each unit should rent for $950 with LVP, paint, and updated appliances.
We will gradually increase the rent to fair market rates and if a unit vacates, put in $2500 in upgrades and increase it immediately to $900-$950.
We're buying them as 50/50 partners with him bringing the cash to close and me bringing the deal, lender, and managing the renovations and PM. It's important to me to build long term relationships with partners and make it a win-win for everyone.
Do you guys think I left too much money in the deal? If I were to do it again, a better path would be to sell it to our joint LLC for ~$100k/duplex. Still a great deal and I'm bringing $50K in equity to the table vs the ~$35k down payment from the other partner and I'm managing the whole deal.
Any advice on how to better structure this?