No idea about the legalities of it, but this is not something that is unheard of.  

It’s not unheard of for founders to start exploring their new thing before they quit their day job.

Which is unheard of high.

The 50 / 50 split above a 15% LP IRR is also extremely favorable to the GP, and relatively unheard of (at least in the institutional private equity world). 

It's not unheard of to negotiate on higher price point rentals.

Lower loan amounts are common here in the Midwest…~$50k loans aren’t unheard of, just depends on the whole scenario on whether or not it makes sense to do

However, speaking to what @Michael Baum post says, something in the neighborhood of 500 a night isn't unheard of up here. 

He offered me a deal he had PRE NEGOTIATED, it was a SFR worth $50-55k (remember this is 1982-1983) for $55,000 with $5,000 down and owner financing of $50,000 over 20 years at the then unheard of interest rate of 7% ( new financing was available at 11% +).  

This could be a headache, This would be rare but it is not unheard of.

We were just down there, and very impressed with the area.The golf is an unheard of rate for Mexico, is $500/year for 6 months+ $5 a time for owners.