Most private placement deals I see have a LP/Sponsor waterfall that incorporates a Preferred Return, whereby the LP gets a stated rate of return before the Sponsor gets any money.The Preferred Return can be based either on the Initial Capital Contribution or it can be based on the Unreturned / Unrecovered Capital.

Due to the automatic annual increases set upon in the long term lease upon purchase there is built in forced appreciation, and the profit split for the exit is similar to a waterfall hurdle for multifamily or MHP deal.

You would probably need to setup some kind of waterfall, like:Pay X% preferred return based on operational cash flows (guarantee return to make more attractive)Provide a split of profits on the sale of the propertyYour partner will probably want to share in the tax benefits (depreciation) and have no liability. 

No water falls from the roof, and all of the drain tiles function.3.

I have seen it done also with a waterfall return back to the investor

Too risky with an office supply as a major tenant and the waterfall is not very investor friendly.

Calacatta quartz w/ waterfall in the kitchen (2 tone cabinets), GE Cafe appliances, hardwood floors, iPad station to control the new A/C we put in, SkyBell video doorbell.

Percent split on profits 70/30 or 80/20,waterfall?

Does the expensive place have high ceilings and a waterfall island?

Re-landscaped the front and backyard, including adding a patio and waterfall feature.