LLC or LLP when partnering on a cash deal?

[Russ Marlborough]

I’m buying a property with a friend. We are paying cash and are going to rehab it. Once the rehab is done we plan to rent it out and refinance it to pull our cash back out.

My partner and I are splitting the deal 5050. We are both experienced real estate investors with different areas of expertise. He is a flipper where I am a more experienced landlord and buy and hold investor. We are both looking to learn from one another in the deal and make some money at the same time.

My question is should I set up an LLC or an LLP for the purchase? And can my existing LLC be the half owner of that new LLP or LLC?

Thanks for the help!!