How can I structure this deal for LLC

[Seth Cunningham]

Ok, so I my in-laws decided they want to go 50-50 on a SFH rental we are looking at. The mother died, both kids live out of state and hopefully we can get it for a great price.

I ran the numbers, and looking into other possibilities of splitting the lot up to sell (one of few double lots in high value area) and all looks good based on mostly equity with some cash flow.

What I am trying to figure out is how we can set up this partnership, we have talked about an LLC and we are pretty sure the bank will not loan to me in an LLC (they are double checking, small local bank). The plan was for my wife and I to finance it and they split the down payment, closing, rehab, etc. Besides them "gifting" their part of the down payment how can we set this up where we can have a partnership 50-50 with no complications?

I have the power to get the loan, but I don't want to take the full taxable income if I plan on splitting all profits with them. They have the cash to buy it outright, then we could rehab and refinance maybe? I wasn't sure how this would affect them tax wise putting the money into an LLC to purchase, then after the rehab refinancing the house. Plus I know they only want to put in half after all said and done, but don't want the deal to slip away if they need to buy it with cash.

Any help is appreciated.