Doing a Deal with My Brother

[Sidro Felix]

Hi everyone my name is Sidro. 1st time on BP. I would like some advice on this. So my brother and I are partnering on a rental property, his contribution is his ability to qualify for a great loan (5%down 30yr fix @ 3.75). I will be funding all expenses ( aquisition, renovating) everything it takes to get a tenant in the house. My question is what is a fair split on ownership???? 65/35?. 60/40? Me having the greater percentage. I'm a newbie, 1st time partnering. Thank again my people. 

[Sam LLoyd]

Ok, here's my updated opinion... I don't think this is a good deal.

If you're putting up 30k to get $50/month in returns.... that's only 2% return on your investment.  You'd be better off putting the money in a fund... and avoid the risk and management time cost.  Also, as far as your brother is concerned.... if I were advising him, I would say that $50/month is not enough to put your credit and future buying power on the line.

Also.... it sounds like you may not have ongoing maintenance and vacancy costs in your cash flow analisys... be very careful about this.  So... please, keep bringing us deals to help you evaluate... and maybe there's more about this one than I understand.