We put in numerous offers before we finally had one accepted (in an entirely different state, no less!)

If you each put in 50% of the required cash, both of you are on the loan, and neither of you actually do any work on the property, then, yes, a 50/50 split on cash flow (or losses) would be appropriate.

If you're looking for 30 year fixed rate financing you will have to do that in your own name and will likely need 20% down.Creating the LLC is just a distraction.

You can put in your lease that if the tenant is late you may cut off a finger of your choice.

You should be pleased they trust you and you have time to inspect without the distraction of some one telling you what your looking at.

If they are separately metered then it can be put in the tenants name.

I would also call a couple of vacation rental companies in the area and tell them you are thinking about buying there and ask them what areas rent best, what size house you should get, what amenities you should put in (wifi, hot tub, pool table, etc).

What we have put in-place for ourselves would likely not be appropriate in you situation.In Canada I was going to start investing as sole proprietorship so i could get the lower tax rate ( the need for liability protection via corporate structure is lower in Canada).When you are first starting out there can be benefits to holding {residential rental} property in your own name - especially if you are expecting to produce negative cash-flow in the first year or two as you can use the loss against your earned income from other sources.

(I kind of had the lone ranger mentality at the time, not asking for help, and had not even discovered BP) That was about six years ago, and the extra work I put in has been totally destroyed (and I haven't even had bad tenants).

However if you don't have as much time to put in then perhaps you can get 40% to their 60% of profits for a while....