In fact, we're re-financing it and pulling out enough to cover what we put down on it + the air conditioning repairs so technically we're operating on infinite returns now.

Thanks @Karen Margrave :) The 50/50 structure is pretty simple, the RE attorney will be able to draft up a JV partnership agreement or an operating agreement for an LLC.

I'm familiar with straightforward quick flips, but this seems more complex.Could someone suggest key protective terms to put in place, or a source for boilerplate LLC operating agreement language to compare against?

@Eddie Starr - Your choice of entity depends on your business operations.

I recommend it.But plugging into BP here and getting involved will teach you loads over time.

I currently am a Power Plant Operator and am saving my extra income to start investing in assets so that my money can make money, instead of 'working' for my money.

However, except for the once in a lifetime great buy, you will end up with low income property with low price appreciation potential.Assuming a 50% net operating income, the 2% rule yields 12% return on purchase price, as if purchase price is paid in cash.On residential investments I buy class A high rise luxury condos, and expect a 7-8% return.

If frost gets into the ground under a structure especially under a point load it can wreak havoc on the "line of a building".

There are of course other, more complex ways to do it but just make sure all the JV and operating agreements are spelled out and signed/notarized prior to entering into a contract.

I'd have a monthly Operations and Cap Ex budget of at least $150.