Creating LLC, Bussiness Partner Bringing In Properties He Owns

[Account Closed]

My father and I currently own 5 homes and a quad-plex. It's a 50/50 split in all aspects. We have decided to put them into an LLC moving forward (50/50 set up) but he already owns 3 homes. We are discussing terms if he were to bring those 3 homes under the LLC and how that would work. He has proposed putting his 3 houses into this newly formed LLC and it would owe him the equity he has in those homes. We've discussed me (Owner 1) paying him (Owner 2) for half of the equity to be square fromthe get go or having the LLC owe Owner 2 on a note of the equity he has accrued in those 3 homes. That note would then accrue at an agreed upon %.

I will layout the dollar amounts below but I have a few questions...

1. Group the 3 homes into the LLC or have him leave them out?

2. Buy into the homes now to avoid confusion or let Owner 2 carry a note and accrue interest?

3. If we do carry a note what should the interest be? 3.5% had been proposed. 

4. What should the value of the note be based on amounts given below?

5. He proposed not having the company pay off the note and let it gain interest until he passes away and I could address it then. 

Owned by Owner 1 and Owner 2

- $35k Market Value - $24,000 Mortgage

- $40k MV- $30k Owed

- $40k MV- $30k Owed

- $40k MV- $35k Owed

- $60k MV- $45k Owed

- $190k Quad-Plex - $155k Owed

Owned by Owner 2

- $55k MV - $0 Owed ($27k Purchase Price + 15k Improvements )

- $60k MV- $5k Owed($55k Purchase Price + 15k Improvements )

- $105k MV - $45k Owed($55k Purchase Price + 25k Improvements )