Short Term Rental - To partner or not?

[Kiran Dhaliwal]

Hi everyone! I'm looking to purchase my first investment property to be used as a short term rental. 

In your opinion, should I partner with a friend? Or should I wait until I have enough capital to purchase the property on my own?

If you have had experience with partnerships on STRs, how were the profits, equity, management duties, etc. split?

[Scott K.]

In my opinion, never partner with a friend unless you're OK losing that friend by taking them to court. Crazier things have happened. Some people treat money like a number and some treat it very emotionally. You won't know until **** hits the fan. 

If you must partner, there are better more professional ways to do so, like a hard money lender, etc. 

I partner with my family to invest. They are passive owners who invested and own a percent of the business equal to their investment share. I run operations and take a percent of revenue off the top. We also have a percent profit share every quarter. Beyond that we reinvest everything into the business.