A fee of $8K to manage the operation.2. 30% of the profits go to me. 3. 70% of the profits go to the investors. 

Only as an actual operator.

It seems like there's a lot of red flags here but I'm trying to see if I'm overlooking something or if they way they are operating is normal in the property management space, although from what I've seen it seems most companies pay bills out of their own pocket first and then deduct that from rental income before sending payment to the owner.Many thanks for your input!

The operational costs and logistics can be quite a headache. 

Be sure to iron out the operating agreement.

It doesn't matter how many are involved, how much money or even if they're related to you.With your typical syndication structure, the passive investors are Limited Partners (LP) and you as the operator are the general partner (GP).

@Lemanuel Turnipseed the only way you could legally own and operate a STR in Orleans Parish would be to buy a property that is zoned commercial or mixed use. 

In general you'll need an operating agreement between you and your members of the LLC that outlines everything.

If you use private money it's very easy to add the partner to a new or existing LLC via an operating agreement.  

Can anyone help me with thought process here or best approach on order of operations in expanding?