Entering into an LLC with a friend to buy an expensive property

[Nikk Wong]

Hi, thank you for reading. I am a new-ish property investor. I have 4 properties that are all single-family which I rent out to long term tenants + airbnb. The income covers the mortgage and some of the prop tax on all of my units. 

I am considering purchasing an apartment with a not-so-close friend. The property is 3M. I am putting down 300k cash. The friend would be putting down 700k and assuming a loan in her name to cover the rest. The revenue split would be according to ownership share, me with 10% and her with 90%. She would buy the property alone but the owner wants $1M cash; which she does not have, which is why I am involved.

The financials on the property look good. There are 12 units each of which nets $1700. There is a lot of upside potential as the units need renovations. The area is desirable; and the lot may have other revenue producing opportunities. The property is in good shape. The current owner is old and reportedly wants to retire.

My friend is very smart (was a big name at google, amazon, etc) and is experienced with multiple larger units. I am 15 years younger than her and have somewhat assumed an apprenticeship role in the relationship. I am 30 and have a high paying job and a decent amount of savings.

We're trying to draft an operating agreement together as an LLC and I am trying to make sure my bases are covered. Things that we have discussed are rights of refusal if either party wants to sell their position; a minimum hold period of 7 years, & only making withdrawals if there is 10k reserve in the shared account.

I am curious to hear anyone's thoughts on what the obvious pitfalls could be for me as a 10% owner, and if there is anything I am overlooking. Thank you!