Selling shares of property possible?

[Paul Garcia]

An idea popped into my head today and I don’t know if it’s possible or feasible.

Hypothetical situation. You own a property with a mortgage. Bought for $100K with $25k down. Before taxes, it cash flows $7.5K. It's held in an LLC where you are the only owner. Could you sell interest in the LLC where the investor would not be responsible for any debt? Could you sell $10k worth of interest but only give $1.5k of the cash flow? Lastly, could the $10k investment be an unapportionable share of the LLC?

I basically want to sell a share of my properties but not dollar for dollar. It would still be a good deal for the investor, 15% return on their cash ($1.5K/$10K). I would also not want them to get a full $10k of the equity in the property. In this example I would like to have the $10k equal to 20% of the equity, or $5K. Would there be any tax implications?