Partnership for Buy and Hold 4 Plex

[Larry H.]

I am under contract on a 4 plex. Inspection revealed about $40,000-$50,000 worth of work that needs to be done. I am currently waiting on the seller to accept or reject my new purchase price offer, however, I don't have that much cash to rehab the property. My father in law is a contractor and said he would be willing to do the rehab for a percentage of the equity/cash flow. Based on what I figure we would be at about a 55%/45% split. Anyone have experience with this type of deal? Any particulars I should be aware of? Do I let the bank know of the partnership for purpose of rehab, or keep it quiet? I think it will appraise for what I need it to without the rehab, so I'm thinking I won't need to show proof of funds for the repairs. My FIL currently cuts the grass at our other properties and we pay him. If we are partners on this deal should he not get paid to cut the grass at this property since he will be an equity partner? I have not talked to an attorney but I plan to use one to have a contract drawn up. If anyone can recommend an attorney in Baton Rouge for this id appreciate it. ARV is around $140,000 Proposed purchase price is $70,000 Expected rehab is around $50,000 Total gross rent is $2400/ month