Equitable Distribution With Partner
I'm thinking of partnering with someone where we'll split the downpayment and closing costs, but I'll be managing the property.
Given this scenario, what would be a good split of the rental profits?
(assume a 2 or 3 fam home)
Thanks
-Ariel
Most licensed property managers charge around 10% of the monthly income. You may be able to find some as low as 7%. However, they are also required by law to keep records, and file reports in set time frames.
Anyway, perhaps what may work in your scenairo, it to take 5-10% of the rental income off the top, and split the rest.
So if you took 10% off the top, the remaining 90% would be split, giving you a total of 55%.
I don't know how much work yiou are having to do to manage, or how many properties you own, but it may be well worth hiring a licensed property manager, and spending your efforts in getting more deals.
Good Luck!
Well, I'm looking at a deal where he will put up the cash and financing, but I will be doing all the leg work to set up the purchase and management of the property. In the end, he's showing up at the close to write a check.
The other question is, do I handle any expenses to manage? It seems I should in your calculation above.
So if it costs about $200 to place ads and show an apt, I would foot the bill, correct? Or should any and all expenses come out equally from the income?
Thanks again...