How to split profit from a rental?

[Angel Harris]

Hello!

Just looking for some general guidance—

My husband and I own two rentals (single family homes) in Indianapolis. We are excited to buy our next property-but don’t have the funds to invest, yet.

My dad (who lives in Columbus) is interested in buying a property (a fourplex) with us. He would be investing the entire 60k down payment. We would be managing the property.

We’re not sure how to split the income when he is bringing the money and we are bringing the experience/management/sweat equity.

Any tips or advice?

[Aaron K.]

@Angel Harris if you want to do right by him don't take a share of the profits, because at that point he'd be better off paying a professional property manager, maybe a small fee for management and repairs but it should be less than the pros charge because let's face it you aren't a professional property manager or contractor.  If I were in your shoes I'd share advice and things you've learned but let this be his investment, because he is bringing 100% of the money and 100% of the risk.