Structuring deal with property manager / possible investor

[Rick Moccino]

My friend is a property manager for a property management company, and also a licensed RE agent. We are looking at rental properties which either he can manage himself, or the management company he works for can manage. Assuming we go on to do other deals together and considering tax advantages/disadvantages, how would you rank these deal arrangements, and what do you think are fair or ideal numbers for A, B, P, Q, X, Y?

1) He earns buying agent commission on the sale, and the property management company manages the property at market rate.

2) He earns buying agent commission on the sale, and manages the property himself at a discounted rate A%.

3) He contributes his buying agent commission to the purchase, and manages the property himself at market rate.

4) He contributes his buying agent commission and/or capital totaling X% of the purchase in return for equity P%, and the property management company manages the property at market rate.

5) He contributes his buying agent commission and/or capital totaling Y% of the purchase in return for equity Q%, and he manages the property at discounted rate B%.

6) Other - if so, what?