Structuring Partnership with Parents...Advice?

[Ray Smith]

Hi Bigger Pockets community!

My grandad grew up on a farm and was the only member of his family to go to college on the GI bill, after serving in the Navy. He worked his whole life to set his family up for success, and when he and my grandmother passed away recently they left my parents some capital.

No one in my family has real estate investing experience, but my parents are seriously considering taking a portion of this capital and dedicating it to starting a portfolio and are looking to me for help. I’ve been casually researching over the past couple of years, have talked to a couple of friends who have portfolios, and am brushing up on everything by reading this book and my parents are doing the same: 

Buy, Rehab, Rent, Refinance, Repeat: The BRRRR Rental Property Investment Strategy Made Simple: Greene, David M: 9781947200081: Amazon.com: Books

My parents have $200 - $300k in capital they would be interested in using, but would be more comfortable using less than $100k if possible. My wife and I have $30k max to contribute. They have mentioned giving us some "sweat equity" in an LLC as they are relying on us to "figure things out" for the most part.

I plan to come up with a proposal/the business plan and take it to my parents to see their thoughts.

My questions are:

1. How would you recommend structuring a partnership like this? My parents are flexible - for example, they would be willing to give us a larger percentage of the LLC than we could truly buy into. 

2. Any other general advice on this situation? 

Other helpful information is: My parents' goal is to have some extra cash flow in retirement in 5-10 years, and maybe a couple of AirBnBs to stay in when they want. Mine and my wife’s long-term goal would be to acquire enough properties (longterm rental/airbnbs) for it to be one or both of our full time jobs.

Thank you all so much!