The other method is do a straight cash out refinance up to 80% where you can use it for renovation and allocation the remaining funds to invest.

That being said, your allocation to net worth/PFS should be calculated based on shares you own in the deal.

You should consult with a tax professional to determine the most appropriate allocation method. 

This rental property will be designed with a keen focus on generating a healthy cash flow.Project Blueprint:Budget: Allocated at $200,000, covering construction and all related expenses.Focus: To merge energy efficiency, durability, and tenant comfort with cost-effective construction strategies, making the rentals both affordable and sustainable.Location: Currently scouting – I'm open to suggestions and insights on ideal locations supporting this vision.Strategic Planning:Efficient Design & Planning: I'm considering compact, multi-functional layouts to optimize space usage and incorporate cost-saving construction methods without compromising quality.Sustainability & Efficiency: The plan includes investing in top-notch insulation, air sealing, energy-efficient systems, and sustainable materials to reduce the building's carbon footprint and operational costs.Budget Management & Cost-Saving Initiatives: Careful budgeting and exploring value engineering options are crucial, alongside seeking out grants or incentives for energy-efficient building projects.Community & Sustainability Goals: To create shared amenities to foster a community feel and implement systems encouraging tenants to monitor and reduce their energy consumption.Seeking Community Insights on:Cost-Effective Building Strategies: How can I ensure the project remains within budget while achieving high sustainability and efficiency standards?

If you, what’s your allocation of rent funds to heat?

On top of the NNN/CAM allocation you also want to factor in annual rent escalators and vacancy assumptions.

In this case, a tax partnership with an incredibly complex allocation structure. 

It is designed to give you breathing room if you are allocating your cash flow properly. 

From the profit, we will distribute my by LLC owner allocation.

I'm going to implement RUBS, but am looking for guidance on the proper allocation here.