Feedback on a potential STR partnership structure w. investors

[Dan A.]

I am looking to purchase a STR that would require a larger down payment than I'm able to make on my own, so I may split the equity portion with friends + family. I would be managing the property myself, so there will be a decent amount of sweat equity that I'm putting into the property that I'd like to be reflected in the partnership structure. For reference, I already operate one STR that has been doing well so far so I have some experience as an owner + operator.

Does anyone have experience with this? Here is a proposed structure that I'm considering:

- 8% hurdle rate, so investors receive 100% of the first 8% in cash flow every month

- Anything above 8% is split 50/50 between myself and the investors

- Investors will receive the % of the overall equity in the property that is commensurate with their % down payment

Appreciate any and all thoughts on partnership structures that you have found successful given the info above.