They eat all their profits because they have to live off it.   

., co-managing or contributing funds) could make the LLC or its profits community property, affecting future claims or division in a divorce.

In Central Jersey where the majority of our sales activity is, the towns vary widely in enforcement of this. 

With hardwork and ceasing opportunities we've managed to be part of this major asset and making it even better.

Also, the whole point of hiring a PM is to handle tenant, maintenance, and rent collection, so if your partner isn’t actively managing but just supervising the PM, IMO not worth having a two people essentially looking over the same tasks.Contributing financially for one person and the other having no financial stake raises decision making questions, such as when to sell, how profits will be distributed, etc.

Another way to look at this is......1) figure out what you want to make as a net profit, 2) Do a quick check to see if this is within local averages, 3) Set your pricing at that higher rate, but keep your occupancy lower.You make the same money with less effort or risk...This might not work everywhere, but it's certainly worth a try.

Profits during the partnership can be shared based on the agreed equity split, with income and expenses reported via K-1 forms. 

During 2020 to 2022 I was fighting to keep my business profitable as materials and labor came in short supply and eventually led to the inflation we're seeing now.

I'd also go through and look to see if there are major problems-eg is the water bill higher than expected because there is a leaky toilet or faucet, put some inexpensive low flow shower heads in. 

This could be minor, or major work that we wont know about until that inspector comes out.