The business is the hospitality side and how well the vacation rental is decorated and managed.

I like that structure if your LP's are good with it and the project supports those numbers.More common syndication structure is 2% acquisition fee, 2% asset management fee, 7-8% preferred return, 70 (LP) / 30 (GP) split.

Hello Patrick, there are a few things that need to be considered to turn this into active income such as length of average stay, hours you spend managing property and services you provide.

What I've found so far is the property has to be self-managed for the first year and you either need to live in it 14 days or 10% of total days it was available to rent, whichever is greater. 

We self manage the STR, all other properties are managed by a property manager.

Some guys try to put their entire business into it but in my use it lacked in basic lead management.

Try to find someone who has a lot of property management or investor experience in your market. 

I'm the principal broker for Hardin Realty & Property Management -- We encourage agents to invest and complete personal transactions!

It typically falls into 6 months of gross management fees on the low end and a year and a half of gross management fees. 

If you can manage to get thru to someone by phone to guide you thru, it will go much easier.