Hey @Dana Brix since you have nothing in writing, it should be split 50/50.

If the bill is $100 a month split between four units, increase it to $120 and charge each tenant $30.How to calculate charges.

Finding cash-flowing deals are tough, but pad-splits could be a game-changer—both for improving returns and addressing affordability in housing

In Culver City, SB-9 allows homeowners to split lots as small as 2,400 square feet, making it possible to create new housing opportunities in single-family neighborhoods.

Has anyone used any of the apps that allow the tenants to split payments, but still send the rent to you as a single payment? 

Our primary goal is to retain as much equity in our properties as possible while leveraging outside capital to scale faster.Proposed Investment Structure:Investors contribute 30% of the purchase price and 30% of furnishing/rehab costs.Our LLC secures a new purchase loan in its name only, taking on 100% of the debt.This structure allows us to maintain 70% ownership of the property.Properties will be actively managed to maximize returns, likely achieving higher upside than long-term rentals.Proposed Compensation for Investors:6% preferred return annually.After the preferred return is met, profits are split 75/25 (with investors receiving 75% of profits on their portion of ownership).Profit Calculation:Revenue – Operating ExpensesExcludes mortgage principal & interest, as our LLC assumes full responsibility for the loan.Looking for Feedback:Is this structure fair and attractive to investors while ensuring long-term alignment?

Our primary goal is to retain as much equity in our properties as possible while leveraging outside capital to scale faster.Proposed Investment Structure:Investors contribute 30% of the purchase price and 30% of furnishing/rehab costs.Our LLC secures a new purchase loan in its name only, taking on 100% of the debt.This structure allows us to maintain 70% ownership of the property.Properties will be actively managed to maximize returns, likely achieving higher upside than long-term rentals.Proposed Compensation for Investors:6% preferred return annually.After the preferred return is met, profits are split 75/25 (with investors receiving 75% of profits on their portion of ownership).Profit Calculation:Revenue – Operating ExpensesExcludes mortgage principal & interest, as our LLC assumes full responsibility for the loan.Looking for Feedback:Is this structure fair and attractive to investors while ensuring long-term alignment? 

Splitting profits or sharing equity can become a logistical and bookkeeping nightmare.As a partner, I don’t want to worry about how you are spending your money on expenses so that I can make a profit.

.: Does anyone have personal experience turning your property into a rent by the room with pad split?

It seems to me that if I were the agent on the buying/selling side of these, I would save 2-3% on each deal (typical agent commission for each side).