How to buy STR with Father?

[Jacob Bedard]

My Father has been renting us a house in OBX every summer since I was a kid and were both pretty affluent now and I'm floating the idea of us going in together on an Oceanfront somewhere in OBX that we can use a few weeks a year and have it pay for itself via rentals the rest of the year. We're both on board with the idea now - my question is around how to make the purchase and structure the agreement...we both want to go in 50/50 towards a conventional loan and then have it managed by a property manager. Another consideration is that he may be retiring soon so do we need to make the purchase before he retires because DTI will come into play? Any help is appreciated, thanks - and of course once we have the plan we will probably need an agent in OBX...

[Patrick Roberts]

Most people quit claim the deed to an LLC after closing on the loan. Just know that if there is a Due on Sale clause in the mortgage (99.9% of loans will have them), the note holder could theoretically call the loan due. Rarely happens, but it's a potential outcome.