Starting a partnership

[Aaron Mariano]

I'm looking to start a partnership with a friend.  

He is a Navy Officer in the Jacksonville FL area and I have known him for 20+ years.  He is new to RE, but has is an educated Navy Officer looking to do something on the side. He currently owns a primary residence so he knows the ins and outs of owning property.

I currently own 3 properties in a major metro area in NE and looking to diversify to a more affordable area.  I can't keep buying 400K+ properties so looking to slowly diversify in FL (100K properties).  I have self managed my properties for 5+ years and would say i am moderately experienced doing all rentals, property management, contracts and other related responsibilities.  

Wondering the best way to structure a corporation with my friend.  We are looking to go 50/50 on a conservative first property and potentially build from there.  Neither of us are looking to profit on this venture meaning we will not be paying our selves, but reinvesting all profits back into the company.

I'd like to form some sort of formal corporation before we move forward: LLC, S corp, ETC. Any recommendations or feedback from similar situations would be greatly appreciated. I have about 800K in assets and he has about 300K. We are looking to invest about 20-30K to start off or potentially do a cash deal on a foreclosure.

He knows the area in Jacksonville and we would be targeting college students, young professionals, and military personnel (which he has a lot of experience). My experience is value add properties.  I have a degree in finance and would manage all of the financials and strategies. He is a hands on guy who would do the maintenance and networking with local experts.