Co-owning a rental property when not an equal share holder

[Michael White]

A relative approached me with the opportunity to purchase a vacation home that we have been going to for over 30 years as renters. The current owners want to sell the property and my relative wants to buy it. They already have a mortgage offer and a down payment ready to go. I would be coming in and purchasing a small share of the property (say 5%). I am assuming we would do a TIC or a LLC to divide up the ownership into unequal shares. Does anyone have any recommendations about how the best way to position ourselves through this process?

Please don't respond if your advice is to not do business with family.