Equity with Financing with family and friends

[Vince Rodriguez]

Hello friends,

I am just finishing up on renovating my 1st deal on a triplex in Bakersfield which I bought in July 2018, had to put in a lot of work, but its good now.

My question is I am looking to buy a 2nd property in the 1st quarter of 2019 in Bakersfield area and I will be raising money from my family and friends. How should i go about splitting up equity and profits. 

If my sister puts in 20% of the property's value , should she get 50% equity and 50% profits ? and she will split the repairs cost as well. I will be doing all the work including, finding, running comps , making sure numbers are good, hiring management company and doing the repairs with my team in CA. 

eg: property value 100k, sis puts in 20k. repairs and renovation 20k , I split 50/50 

income 1k per month, profit after all expenses and mortage 300 , we split and she get $150 per month. thats a 6% return on investment (1st year, 9% if you dont include repairs) + 50% equity

sounds fair to me

Let me know and thank you in advance

-Vince