All Forum Posts by: Nathan Rudibaugh

 Thanks, Don! That is exactly the kind of guidance I am looking for, actually. On the face of it, I am proposing something that sounds complicated. But breaking it down into components like you mentioned makes it easier to get my arms around. And I imagine my meager woodland dwelling will be an order of magnitude or two less complicated overall than the  construction of the Empire State Building. :)

Hey Tony! Ha. That's fair. My family is tight and low drama, so I think we can do it. But that doesn't mean I would forego the arrangements that would protect everyone if the situation soured. 

Working with family can be fraught, but that is true with any deal. There are some genuine upsides here, that i think outweigh the downsides. So I am looking for frameworks that maximize the former and minimize the latter. 

I would love this community's input on a slightly unusual real estate partnership. I’m considering a project in collaboration with my sister, who owns rural property outside of Columbus, Ohio, where she also runs a homesteading education non-profit.

I’m interested in funding the construction of a dwelling on that land, with the intent that it could be used to support her educational programming, generate income as a short-term rental, and eventually (10+ years) become a part-time residence for my partner and me.

While I have some experience with more conventional real estate investments, this venture has a very different purpose and structure, blending family partnership, nonprofit collaboration, and long-term planning. I have a number of questions about how best to approach this from a legal and operational standpoint, including ownership structures, liability considerations, use agreements, and any zoning or permitting concerns that might arise.

I welcome all thoughts, ideas, connections, etc, and have some specific questions around:

1. Ownership Structures:

● What are the various ownership structures we could consider (e.g., LLC, direct

ownership with a formal agreement, trust), and what are the pros and cons of each in

terms of liability protection, tax implications, and flexibility for future changes in use or

ownership?

● Given the blended purpose (non-profit support, rental income, future personal

residence), which ownership structure would best accommodate these diverse

objectives and potential long-term transitions?

● How can we ensure clear documentation of the financial investment and Tenderfoot

property contribution, regardless of the chosen structure?

2. Liability Considerations:

● What are the potential liability risks associated with operating a short-term rental and

supporting a non-profit on the same property?

● How can the chosen ownership structure mitigate these risks for both parties?

● What type of insurance coverage would be necessary to protect against potential

liabilities related to property use, guests, and the non-profit's activities?

3. Use Agreements and Operational Framework:

● What type of formal agreement would be needed between L+T (as land owner and non-

profit operator) and N+K (as funders and future part-time residents) to define roles,

responsibilities, and financial arrangements?

● How can we clearly delineate the usage of the dwelling for the non-profit's educational

programming versus short-term rental use?

● What mechanisms can be put in place to manage rental income, expenses, and profit

distribution?

● How would future changes in the dwelling's primary use (e.g., transition to part-time

personal residence) be documented and managed within this agreement?

4. Zoning and Permitting Concerns:

● What are the specific zoning regulations in Athens, Ohio, for rural properties regarding

residential construction, short-term rentals, and non-profit activities?

● Are there any special permits or approvals required for constructing a new dwelling on

agricultural or rural land?

● What are the requirements for operating a short-term rental in this area (e.g., licenses,

occupancy limits, safety regulations)?

● Are there any restrictions or considerations related to the non-profit's educational

programming occurring on the property?

5. Long-Term Planning and Exit Strategy:

● How can we build flexibility into the legal framework to accommodate the long-term goal

of the dwelling becoming a part-time residence in 10+ years?

● What considerations should be made if one party wishes to exit the partnership before

the 10-year mark, or if the non-profit's needs change significantly?

● How can the agreement address potential future disagreements or changes in

circumstances between family members?