Partnership & Tax Advice

[Bryan Lutz]

Hello all, 

I will be entering into the following deal, please succinctly advise how you structure for liability and tax purposes.

+ BRRRR deal

+ two person partnership 50/50 on all funds, expenses, liabilities

+ one partner initial cash purchase, same one partner holds after refinance

Pre-purchase: Would you set up the partnership as a multi-party LLC acting as a management company. All profit/losses are dispersed via the mgmt co. Mgmt Co issues a annual K1; where as partnership fee disbursements are calculated so that single property holding partner shows neutral tax benefit/liability.

Post-refi: move property into a holding company LLC (ignor due on sale clause concerns)