How do I determine what to pay a silent partner?

[Natasha Esguerra]

Hi guys,

I'm looking to purchase a duplex (first rental property) and live in one side at least initially. My best friend inquired about being a silent partner and that he could help with the down. We're considering a 15% conventional, and we'd each do 7.5% down. My husband and I would be living in one side at least for the first 6 months, fixing it up as needed although it seems pretty turnkey. We're currently living in my mom's house and getting that ready to rent out as well which should cash flow nicely. For this duplex we are looking at, if both sides are rented out, the pure cash flow is between $348 (worse case due to CapX, repairs, maintenance) and $1208 (best case). If we live in one side for a year, then me and hubby would need to pay around $500 to cover the remaining mortgage, plus utilities and stuff which still isn't bad.

I guess my question is, if my friend puts in 7.5% down (50% of the down), how does one figure how much to pay him each month? Especially if I'm living in the one side initially and I'd be doing all the managing? What do people typically do? I'm new to investing but also definitely new to the possibility of partnerships.