By maximizing net operating income now, you are positioning yourself for a stronger refinance when rates drop​.Looking Ahead: The 2026-2027 OpportunityIn my view, 2026-2027 is shaping up to be a critical period for the real estate market.

The agreements I've seen basically say you are guaranteed nothing, you could lose all your money, you might not be paid on time or ever, you can't rely on any representation made by the GP, you have no control over the operation and other terms and disclaimers to that effect.

A PM company in California is required to have a broker officer, so either your dad can take on that role and put you in charge of the operations, or you can obtain your broker's license first.

This approach allows our clients to enjoy consistent bookings, great reviews, and higher returns on their properties than a average or mom and pop operator. 

I’m thinking this could help us with tax deductions, especially if we operate at a loss.Does anyone have experience with a situation like this?

I'm trying to buy, fix, and rent real estate and created an LLC with my partner who is putting up most of the capital but he will not handle operations at all.

@Larry Caper if your goal is to do your own deals and you do not want to expose your investors to other operators then you need to create a fund of funds.

ALWAYS have written tenant screening procedures that comply with local law. 

We've already put together an LLA, and found a generic operating agreement online.

Your raise happens to be on the lower end of where such firms operate but certainly a plausible option assuming the investment thesis is sound & the GP checks out.