That's where things start is getting your finances under control and allocating against the highest interest debts possible. 

I've seen investors allocate 5-10% for capital expenditures (capex) and vacancy, but you won't have a clear understanding until you've owned the property for a few years and established a track record.

Profits and losses shall be allocated as follows;a.

In terms of cash, I have conservatively allocated 20k for my house hack. 6125 (3.5% of down payment) + 4000 (closing costs) + 7000 (6 months of cash reserves to maximize the rental income I can pull from the other units to help me qualify) = 17.125k.

Great flexibility in allocating income and expenses between and among LLC members.

Allocate 75% of the cost of the property to the investment rentals, then use your exchange funds to acquire those three units making sure that the purchase price for those three units is greater than or equal to the value of the property you relinquished.

You will need to read them and do some math, but this would allow you to calculate costs and evenly allocate them if they go 50/50.

He also knows how to perform cost allocation studies on rentals when you need them.

A typical percentage of a property value to allocate to land value is 20%, or in this example it would be $100k.

The cost basis includes:Purchase Price: The amount you paid for the property.Renovation Costs: Add the cost of improvements and remodels that significantly enhance the property's value.Closing Costs: Certain closing costs related to acquiring the property (like title fees) can be added to the basis.You will then allocate the total cost basis between the land (which isn't depreciable) and the building (which is depreciable over 27.5 years for residential properties).If you're unsure about how to allocate between land and building, you can use the allocation percentage from your property tax records or get an appraisal.This post does not create a CPA-Client relationship.