Purchasing a vacation home (later to be STR) as a partnership

[Tal Shachar]

Dear BP friends,

My wife and I consider buying a vacation home with another family, and at some point rent it short-term.

Each family will have 50% equity, and when we put it on airbnb, I will manage it (for a % of income)

When we decide to rent it STR, the plan is to deed the property into an LLC, which will be owned partially by a holding company (my wife's and mine) and the other family.

Consider the above, I would appreciate some advice on the following options (or others, if I missed):

1. Buying the property under an LLC out of the gate (higher DP, higher mortgage rate, most likely MMLLC, but no need to deed it later)

2. Buying the property as vacation home, and at some point deed it under an LLC (lower DP, lower mortgage rate, most likely MMLLC, but need later to deed it into an LLC)

3. Other options??

Thanks in advance for your advise!