Investing in STR with relative. How to structure deal

[Hector Valle]

Hey BP community. I'm looking into getting into the STR game with a property that I think has amazing potential. It's a few meters from the water, it is a very popular scuba diving spot in west palm beach and a location that gets many tourists. Now the occupancy rate for similar properties nearby are about 80% and ADR ranging from175-400. But this one is pretty unique in terms of views and proximity to water so I think we can get 350-500 on the low end.

So on to the terms, the home is being listed for 997k. My relative and I are planning on each putting down 10% coming out to roughly 100k each. I plan to take out a HELOC or Second Mortgage (depending on what makes more sense). We would be both on the title but they plan on running the AirBNB. I was thinking I can anywhere from 15-20% of monthly gross revenue until they buy me out of my original 100k. What do you guys think? Has anyone structured anything similar with repayment period or exit strategy. Thanks