How to Structure A Partnership / Business

[Billy Madden]

Hello all,

My wife and I have partnered with my parents for starting out due to my father’s knowledge and ability, time and money for house purchases. We bring deal finding, money for rehab and ability to work with contractors to the table. My father wants to rehab the houses since he has a handyman background but wants nothing to do with rentals. He’s been burned in the past and doesn’t want to go fix problems on an ongoing basis. So we started with flipping since that was a good way to get started and he could do what he likes.

Our issue that we would like some opinions on is that we've found a house that makes no sense as a flip but as a BRRRR it makes good sense at appx $220/month after all expenses.

Should we BRRRR this one and figure out how to split rents down the line or ‘flip' it from one entity to another?

Any ideas or suggestions would be greatly appreciated, Thanks!