Multi Unit Opportunity
Hello
I have a unique opportunity to use capital and equity from an investor to purchase a multi unit property and rent out a portion of it to my self and or a tenant while using the other portion as a vacation rental. The investor is putting the due diligence and business plan in my hands to submit and review. We have spoken of starting an LLC. My first question is: Understanding that the investor would supply the down payment and some start up funding, lets say $250,000 for a $1,000,000 property, what would be a fair starting point for ownership percentages? simple math says 25% however I feel like any investor would want to negotiate more.
Vaguely speaking split resposibilies would include:
Myself - Handling of financials and property management
Investor - on hands involvement with acquisition and any necessary initial improvements and involvement with any major projects.
the investor lives out of state and I live in a highly desirable vacation area where a combination of local tenant(s) and a vacation rental would eclipse any mortgage.
Another up front cost to consider would be the vacation rental. Adequate furnishings and housewares; art etc. would be required to draw the correct price for the unit.
New and excited to BP...
Lets start a conversation!
Mathew