What to consider in a partnership deal?

[Bob Yon]

I am talking to a fellow REI club member about partnering on a deal. I would like to know your opinion on what should be considered, and should be included in our agreement.

We are going to be purchasing a home for about $20k that we expect to rent for $650 - $700 / month. The house needs very little in repair. Less than $3K.

One of us will be providing the cash to make the purchase, the other will be doing all labor and managing the property.

I know we need to decide on the split of the rent, what our exit strategy will be and when. I expect that we will arrange an LLC for this property alone.

What else should be considered and agreed upon now? What do you think is an equitable split of the rents?

Any and all advice and comments are welcome and appreciated.