Buying out a partner

[Lara Gonzalez]

Hello everyone!

I found an off market property that I would like to use the BRRR method on. Due to lack of funds, I will be bringing a partner on to help me. Here is a breakdown of the property:

Duplex - 2BD/1BA each unit Projected rent at $1,300 each unit.

$320,000 - ARV

$50,000 - Rehab 

$160,000 - Purchase Price

My question is, what is the best way to buy out a partner? According to my numbers, after the refinance with a 80/20 LTV there would be around $46K profit. Do I just give him the profit and count the equity in the property as my gain? I've never had to buy out a partner so if there are any other factors that I am not thinking of, please let me know :)