@Robert Trevino Get into a partnership with the family member via the formation of an LLC.

Hopefully a sale to a developer or partnership would cover the original purchase price.Sounds like a nice problem to have! 

@Sara Elford you will do a partnership return at the end of the year and at sale and allocate prorata share of taxes at that point.

Should I create a partnership for this small development, or just draft a legal agreement between the partners and a separate investor agreement for "investors"? 

Whats the ultimate goal of this partnership? 

No one asks them if that “cash flow” number is for the property or what the partnership cuts each partner per month.    

With an LLC you have the option of being taxed as individual, C or partnership but you need to make that election before you file.

I'm currently based in upstate New York and looking for out-of-state rental investment to build long-term assets.For my first gig, I'm looking at acquiring, and renting, a Single Family Home in Carmel or Indianapolis, and I'm looking for perspectives on these markets, recommendations on realtors and turn key providers in the area, and any other tips you'd have for a new starter.Excited for journey ahead of me, and I look forward to developing many partnerships and friendships with many of you!

How's it going BP,I am wrapping up a flip property that I am partnered on (The partnership is not going as planned and he lacks the necessary motivation, but does have his realtor license... for now).

in our area new construction MF has been booming  but I think there is going to be an over saturation and some softening in rents and profromas with some partnerships stressed by not meeting the DCR requirements.as for SFR its well not a Joke but it is a jokeby the time our government with all the rules and fees. it will cost us almost 100k per lot before we go vertical and not including the price of the dirt.. and affordable in our market would be new construction under 300k  virtually impossible to provide that product under the current regulations .. then you take in the fact of tight labor and sub contractors jacking their prices for the last 5 to 7 years and well at least in our market you have to be north of 400k to have any hope of a profit on a new build SFR.Infill is not a lot better given that lot prices are 100 to 300k per in the markets we work  which is Charleston and Portland.used to be we could get infill lots in Indy for example for 20 to 40k those have doubled or more.. instead of buying rentals a few years back the better play would have been to load up on lots in these areas that are transitioning appreciation has been over 100%  ..