here is part of the proposal:STORE SIZE & LOCATION:The demised premises will consist of approximately 2,000 square feet.Said premises to be located in the Shopping Center as shown on the attached site plan.LEASE COMMENCEMENT:Upon mutual lease execution and Landlord’s delivery of the demised premises.TERM:The Term of the lease shall consist of a period of ten (10) years commencing one hundred twenty (120) days from the date Landlord notifies Tenant that the premises are ready for possession or upon opening for business, whichever date shall first occur.RENTAL: Tenant shall pay Rental during the first year of the primary lease term an amount equal to $31.00 per square foot on a triple net basis.Tenant’s annual rent shall escalate at the rate of three percent (3%) per year.Said Rental will be payable in equal monthly installments.OPTION TO RENEW:Tenant shall have one (1) five (5) year option to renew this lease.The Rental in the first year of the option period will be three percent (3%) greater than the rent in year ten (10) of the primary lease term.Annual Rental shall escalate at the rate of three percent (3%) per year.PROPOSED USE:A first-class frozen soft-serve yogurt operation similar to other Frozen Yogurt locations and for no other purpose (to be further defined in lease).ADDITIONAL CHARGES:REAL ESTATE TAXES:Tenant shall be required to pay its pro rata share of real estate taxes and assessments on the land and improvements on the shopping center site, estimated to be $1.25 psf.INSURANCE:Tenant shall be required to pay for its pro rata share of fire and extended coverage insurance on the building, estimated to be $0.29psf.COMMON AREA MAINTENANCE:Tenant shall be required to pay for it’s pro rata share of Common Area Maintenance costs, estimated to be $2.44 psf.LIABILITY INSURANCE: Tenant shall provide liability insurance in keeping with the requirements of the Landlord and/or Landlord's mortgagee.STORE FINISHES:Landlord will deliver the demised premises to the Tenant with RTU’s in good and working order but otherwise in “As-Is” condition.All improvements will be at Tenant’s sole cost and expense.SIGNAGE:Tenant may use its logo and colors for said Signage on the fascia of the said premises as long as it is subject to the Landlord’s sign criteria and governmental agencies governing the project.SECURITY DEPOSIT:A Security Deposit equal to $2,500 is due upon execution of this Letter of Intent.

In this case, losses would be spread out on a pro rata basis of ownership percentages. 

The tax benefits don't necessarily have to tie to the pro rata ownership percentages. 

@Crystal Smith - yes your points are all spot on - i struggle with accurately gauging whether i think i will for sure cashflow more in a re-sell scenario vs. the cashflow on a re-fi vs. breaking even on either scenario.as far as house hacking, i listened to the BP podcast w/ Brandon Hall and visited the 1031 forum here and as far as I can tell, i can house hack and my tax consequence is pro rata in relation to the portion i occupy. 

Any non qualifying use since 2009 applies pro rata to the exclusion.

then the 401K could take a pro-rata portion of the profit? 

You will also have expenses to write off against it, such as a pro-rata share of property taxes, insurance and mortgage interest.  

For our first deal, we could pool our money and purchase a property and share the returns pro rata based on our contributions.

The $55 comes from the $358.32 principal portion of the borrower's payment, which is the pro rata portion of the purchase discount.

The profit from sell gets distributed to all the investors and sponsors according to their pro-rata share of ownership.