Unless you have something to compare to, it's hard to say right?

Luckily the seller of my first property is understanding and has given me some things to take care of in terms of changing over utilities and such (this is a duplex).

yeah you should definitely include this if you wouldn't personally be able to pay all the overhead if you were not getting rent for 6 months, due to like a fire or something.

I purchased knowing that this would eventually be something I wanted to rent out.

idk, i feel like there are necessary details missing here. but i'm also wondering if it would make sense to just reallocate the percentages based on what each person is bringing to the table. it would've been easier if you did have an LLC whose operating agreement you could just change. there's also the 'lazy' 1031 or 'reverse' 1031 where you just make the sale, then strategize with your cpa on how to offset the cap gains for that year. also worth noting: 1/3 of something is better than all of nothing. it sounds like it's not really that partnerships aren't working, it's moreso that you feel like your % is no longer fair? 

I am a bit confused as to why you have a $7,600 swing by changing entity type, I could see it causing some difference in accountant fees at the very least if you're including them in that, and maybe something with SE tax, but $7,600 for a new business seems a little much.

Hey y'all- I'm in the process of converting a workshop on our property into an ADU, and would love to chat with someone local who's done this or something similar. 

I'd say for both markets some things you'd definitely want to have an idea of would be Median Sales Prices, Median Rent Prices, price-rent ratio, days on market and then also % of price increases for the last couple of years.

I posted something similar last night.

Just something to consider.