Need some suggestions- STR Joint Venture

[Beth Crosby]

I'm going to try to keep the short so, if I miss any details because of the shortness, please let me know.

I own 5 lots on the Gulf Coast of Mississippi. 3 are empty , 1 has a home and is a STR (does very well), the last lot I am at the end of a ground up build and will be using for my primary residence. Ive funded the ground up build of my primary with a cash out refi from the one that I use as a STR. SO the New build Primary will be "free and clear".

The other three lots I would like to continue to build STR's. I have cash set aside for a downpayment for the 1st of the 3 lots to build on. The remaining 2, I will likely get a HELOC or cash out refi to pay for downpayments on those from the "fee and clear" new build promary.

Our builder, who we have become very good friends with, is interested in partnering with us on the 3 remaining STR builds. We haven't discussed how it will look yet. I'm just trying to have some things in my head for when we do meet. At this point i believe I will be the financial part of the deal, I will handle the DP and the mortgage/HML, he would handle the build (his fee is about 40K) and he has a rental management company as well, and they charge 25% management fee.

Just for reference, I am a 60-year-old woman. I don't anticipate having rentals for more than 15 years given my age. So I am looking for appreciation value for retirement. I have had the one STR for only 3 months so far. It has cash flow of only about $200-$300.00 a month right now, however May-October I expect cash flow mo. to be about $900.00-$1200 mo. this is just based on AirDNA which we know is not very accurate.

Again, im looking for any scenarios that you all could come up with for me that I could present to my builder/friend, that would be equitable for both of us if we entereed a partnership or JV.

Thak you in advance!

Beth