The market here is relatively expensive, we both have pretty good jobs, but would like to avoid using our entire savings to get this off the ground.

It's where you rent out a portion of your primary residential home to drive the cost of your own living expenses down.Myself I have a 3b/2b trip level home and I rent out a bedroom for 450/m and slowly working on getting the other room into a STR.

Who pays for what expenses?

This one pays off the mortgage but no other expenses which cost about ~4000$ per year (because I live in it).

I also alter the numbers slightly because the market is a little expensive.

Hey Elliot Jones besides all of the things around making sure you find a place in an area that has some possibility for price appreciation, I would caution to be very conservative on your projected incomes and expenses.

A license can be expensive to maintain.

Maybe an LLC where you are both members.When you get to more than a few people investing, you enter syndication territory, which is very complicated (and expensive).

Unless it is a really killer steal, your Practical options are probably at best to recoup any Actual expenses on this deal, and move on.

For calculating expenses I'm taking a percentage from the monthly Rental Income.