What should I be aware of before buying a MF with a partner?

[Tiffany Ralston]

Hello!

We have been asked to invest in a multifamily. It's a 5 year old building, commercial on first floor, 20 condos above.  Three partners total, one at 50%, one at 25% and us at 25%.  This will be the first MF purchase for all three parties. We all have single family rental units, and have experience in that arena, but no experience in partnerships.  The building has a property manager that we will keep, and we all live in the area of the building and are familiar with the market.

What points should we have worked out before we enter the partnership? For example, if one partner wants to invest $20k in landscaping, and one does not, who makes the final decision and who pays for it? Also, do you agree on a set price if one partner wants bought out, or do you buy out their share at current market value? Or what happens if one partner defaults on their loan for the property? Would like to hear as much as possible as we are in the research phase of the investment.  Any pointers, articles or books about these items would be much appreciated! Thanks!