Our concern was more about the model being changed from a 4/2 to a 3/2 plus a den.

This is a good model but doesn't account for a return of the $500k your parents will contribute..For example if the property generates $10k per month with $6k in PITI & operating expenses the proposed return for your parents would be: $2k and $1k for each of the minority partners.

I know that you need the survey, you need to design what is going in the flooday, You need to design how you are offsetting what are doing to get a zero rise certificate, you need to get the FEMA floodway model and then have someone do the software run and make sure that you have zero rise and mybe tell you that you need to change more, but that seems to be mostly internal design and engineering?

I don't agree with their business model to do all that work and flip and profit $10,000 to $20,000 and that's before paying capital gains tax.

Typically, banks, funds, and traders will have an expectation or estimate on key economic data releases, often created through sophisticated, complex financial models.

Great Addition - on the switch from year to year - arguably the biggest flag in my opinion in Real Estate - "shiny object syndrome" switching from niche to niche repeatedly (especially as a "Guru") - whats tried and true for RE success IMO is people that stick with one strategy and niche (type, market, strategy, etc.) for years, stay focused when its in and out of flavor, and end up with big wealth and track record after years.Definitely flags of the last few years when people go from "STR" to "Multiamily Syndication" to "Boutique Hotels" to "Experiences" and so on... 

We also did many calculations of income and expense models over time, based on usage.

And you definitely want to engage an attorney and not just copy and paste docs.Happy to send over my underwriting model for syndication deals, just shoot me a DM.

Please keep in mind that this business model assumes the host is willing to handle guest interactions themselves.Thank you for your insights and suggestions!

You need a lease agreement drafted by a landlord and property management attorney to fit your business model.