I would give them some basic information about how most common options would be taxed and let them know the longer and harder they fight the more it will cost both emotionally and financially. lastly i would let them know I am not an attorney and negotiating legal documents and a partnership buyout is not my skill set.

I would scrap the idea of a partnership idea.

It varies from how I have done small partnership structures, but your outlined ownership/fee type questions are not where I see any real issue, per se.Things to think about: how is the house being titled? 

I work on the property management side of things here in the Charlotte Metro area and wanted to reach out to connect with like-minded professionals and investors.I’m looking to build strong partnerships with:Rental property ownersReal estate investorsHome insurance agentsReal estate agentsLendersContractors Let’s collaborate and create a seamless, full-service experience for our clients—from acquisition to management and everything in between.

If he is a high income earner, he likely won't benefit from a tax perspective as the losses will be deemed passive.Furthermore, you may be adding complexities(splitting of income, filing a partnership tax return, hiring an attorney, LLC Fees) which may just eat up the money you wanted to share with him.

That relationship has grown into a solid lending partnership that’s helped me scale my portfolio since.

I see a lot of folks recommend offering labor in place of capital in partnership deals, but I don't know how likely that is for someone just starting out.

@Alecia LovelessIf you only paid $1800 for seven schedule E rentals and one partnership K-1, or a partnership return, that's a great price.

@Hardik Patel Yes, forming a two-member LLC with your sister is a common and smart way to structure a 50/50 real estate partnership.

Arkansas is not a community property state, so both of us being members creates a partnership, which I'd like to avoid.