Figure out what percentage return he expects, and then base your equity split on that expectation combined with the actual financials when you buy.

Ryan Wilson Figure out your Return on Equity (ROE): total annual cash flow divided by equity in the property.Compare that to the cash on cash returns of other properties.

thanks for the reply and I kinda figured that. 

What I'm trying to figure out is:How can they raise the tax by almost 10%? 

I'm new to this all and have a few questions I'm hoping someone might be able to help me figure out.I'm trying to purchase a 3 bed 2 bath house in a college town.

Thankyou all for the time and responses, I think I am going to figure out how to use listsource.com and send out mass mailers to owners of multi family properties and see if we can get anywhere with that route in finding our cash flowing duplexes.

That is what I Figured. 

The liability protection is the main reason to do them and in general I figure that even if you dont think you need it you are better to have it. 

@Claire Hudgens  This is another example of why I hate HOAs.Here is how this should work...1)  The HOA should decide how often the property will need to be painted.2)  The HOA should figure how much it will cost.3)  The price should be divided by how many assessments will happen between paintings.That is basically the amount they should be charging ever assessment for painting.If they cannot do that I would suggest one of two options. 

You said the tenants pay the utilities, but I would reach out to figure who pays for the gas, electric, water/sewer, city fees, and trash to more refine your estimates.