I think leveraging a partnership model in your scenario is the way to go. 

If you are entering a partnership, make sure you have a VERY clear understanding for how much work each person wants to put in.

So I have had an opportunity present itself to begin investing in RE with some close family members as a partnership. 

That’s a long time to be in a partnership, chose carefully.

What would be the best partnership setup for an arrangement like this?

Working on a partnership now with a few of my friends.

They provide no tax benefits unless you are investing with a non-spousal partner at which point it only provides "apportionment" between the investors, but no real change in taxes.Unless you use a C Corp, all other entities (e.g. partnerships, LLC's, election for S Corp status) are called pass-through entities. 

I've been reading up on Commercial Real Estate Loans, but the biggest question is how to find a lender that can/will: 1) Lend lower amounts $100-150k+2) Not require me to have been a investor for 5+ years (just started a year ago)3) Require 2 years of tax returns as a business..my partnership is less than a year old4) Not require full occupancy..i've found a building that has 5 out of 6 units rented and another that 4 out of 6. 

Hey everyone, have a question on partnerships.

Hey everyone, have a question on partnerships.