My dad came to me and asked if I can help find him a property to AirBnB / create an STR out of in Nashville, TN. He has $400,000 - $500,000 cash he is willing to invest and wants me to find the property for him. Him and my mom want to visit say 3-4 times a year and then Airbnb the rest of the time. I am working with realtors in TN as we speak (*nothing has been signed).

I was talking with my wife and trying to figure out a way to fit myself into this deal. I have always wanted to invest in real estate and I love the idea of owning an STR property in Nashville, TN alongside my dad as partners!

The problem I am having is coming up with a way to structure a deal to work together!

I have $15,000 cash I am willing to invest, which obviously isnt a lot and Im having trouble trying to come up with a way to invest alongside my dad and get some sort of equity or % of the monthly income the STR would bring in.

Say I put in $15,000, my dad puts in the rest to equal 20% down on a $600,000 property = $120,000 total, $105,000 of my dads, say $15,000 of mine, that would equate too 2.5% ownership, and lets say I get 2.5% of the monthly income the property brings in, thats a paltry number. or 2.5% of equity in the property, that doesnt equate to much either. I would love to somehow put this money in and earn an additional $100-$200 a month while having equity in the property and my dad can take the rest of the profits after mortgage payments, expenses, etc.

I am happy to do this for my dad as a favor but id like to make it worth it for me to spend the time finding 5-10 properties (have to imagine a bunch wont work), maybe more!

If I cant come up with any ideas on structuring the deal, I will obviously do this as a favor, but im just trying to spitball someway to invest alongside him and help me in building assets

Any ideas on ways to structure a deal that would work for me & him?

Thanks guys! I hope I dont come across as trying to take advantage of my dad in this post, that is not my intention at all, I am happy to do this for him as a favor and spend the time finding properties, working with the agent, etc.

Nashville, Tennessee

0 Votes