Partnership on a 3-plex in Iowa

[Ross Bauer]

I am currently working on a deal to acquire my 2nd rental property and my first with a partner. The way we have it worked out right now is that we are starting an LLC as 50/50 partners. He is going to put up the money for the down payment and basically be hands off. I will pay him back for my half of the down payment through managing the property. We both have construction experience and he is currently a contractor. If bigger projects arise we will do them together. We have been life long friends and I am excited to get the paperwork done and take over the property. The property will cash flow really well and we plan to keep all the money in the business.

I know partnerships can get tricky at times so I am looking for advice on what needs to be covered before we take on this adventure. Any advice would be greatly appreciated!! Thanks!!