Hey Paul,This is a great question, and it’s smart of you to dig deeper before trying something like this.

I read that you can only do unlimited STR in hotel/motel zones.  

I need to buy a home insurance of $154.If I rent this home for 2,200 per month. 

Our primary goal is to retain as much equity in our properties as possible while leveraging outside capital to scale faster.Proposed Investment Structure:Investors contribute 30% of the purchase price and 30% of furnishing/rehab costs.Our LLC secures a new purchase loan in its name only, taking on 100% of the debt.This structure allows us to maintain 70% ownership of the property.Properties will be actively managed to maximize returns, likely achieving higher upside than long-term rentals.Proposed Compensation for Investors:6% preferred return annually.After the preferred return is met, profits are split 75/25 (with investors receiving 75% of profits on their portion of ownership).Profit Calculation:Revenue – Operating ExpensesExcludes mortgage principal & interest, as our LLC assumes full responsibility for the loan.Looking for Feedback:Is this structure fair and attractive to investors while ensuring long-term alignment?

I really don’t want to lose this buyer—what’s the best way to make this work?

What made you interested in investing in this type of deal?

How did you find this deal and how did you negotiate it?

My question is what is the best structure and any referrals for this fund? 

Over time, rents may increase, improving your cash flow, and you’ll gain equity and valuable experience managing tenants and property operations.

Quote from @Jorge Matamoros: Quote from @Drew Sygit: @Jorge Matamoros this is NOT an easy strategy to pursue!