@Mian Rizwan yes it’s possible to do negative gearing however you need to have the cash to support it for 20 years.It’s also a bit of a speculative gamble as you do not know if the appreciation will be what you want.  

(you need to think whats fair to both guys and you don't want to give everything away either).Now for your % of sales profits, the sales price is directly related to:market conditions (uncontrollable) = RISK,Property management results (controllable by the property manager) = RISK to you because YOU are not the manager.It seems logical (to me) without any other information though, that 50% / 50% would be fair here.As far as LLC control regarding decisions 50% / 50% with some method to break a tie vote if that ever happened.There are a lot of other things that come into play in this, and it's best to have an attorney draft up your agreement and walk you through all of the decisions that need to made on this.That's just a quick off the cuff discussion, an illustration of what could be possible, (you really need to figure this out for yourself, and with an attorney, because this is BIG MONEY over time, and also talk to your CPA because the decisions you make could have adverse tax consequences for both of you if your not careful).Good Luck!

Putting hard money down on Day 1 is foolish, and no better than gambling.

@James Wise Which I understand is a gamble. will probably just wait on a 3-4 unit and house hack with the Va loan when the right deal comes up.

U cannot understand the risk in some of the mid west deep south north east without going there and seeing for yourself.but if you simply want SFR's every city has a median price point.. we have one here in our area for SFR which is closer to 350 to 400k but like say INday for instance its 130k.. you buy at the median and your buying were homeowners are buying and some investors. you buy at 75k and your in an area that ONLY investors buy in.. and your values will ONLY be worth what the cash flow is. its all about balance.. risk reward.. and of course I don't subscribe to the cash flow is the only thing and appreciation is gambling NOT at all. 

So now I mostly hold SPY and "gamble" on some individual stocks.

You never know, but with the info you told me it feels like less of a gamble.

Also on another topic, i highly doubt the homestead exemption is the same set of rules in 1 year.All that being said, to be clear, you think that taking roughly $130k now would be better than gambling that in 20 years, i could take $700k?

If their is no cash flow then you are just gambling and it’s all just wishful thinking of the uncertainty of the future.

I do understand that there is a lot to be done in the area but there is a revitalization plan for that particular area so I am taking a gamble on it!