<prompt> Human: My brother, his wife, and I are buying their neighbours house in Calgary, Alberta. We will be putting different amounts into the down payment and so I am curious what the best way to set up the mortgage and ownership percentages. The idea we have currently is that we will split the house 5050 therefore if the house is 100 for arguments sake and I put 40 down while they put 20 down, I will have a 10 mortgage and they will have a 30 mortgage. Then we split the rent 5050. My interest will be a lot lower and I will pay my mortgage off a lot sooner which will allow my share of the rent to become essentially extra income. The way he suggested setting it up was that they already have a Manulife account that they have their personal home mortgage on so he said they could add their share of the mortgage to that account and then set up a sub-account in my name for my share. I dont live in Alberta so they will doing all of the property management therefor I suggested they get 55 of the rent payment while I get 45. That would be the equivalent of paying a property manager 10. I would appreciate any input that any of you have. Thank you for reading.Also, if it matters, the house is 340,000. I am putting in 120,000 and I think they are putting in around 50,000.  <response>: How Ive done it in the past with partners where Ive been the active manager is that the ownership is split based on the downpayment. That is, if I put in 25, I own 25. Same with the mortgage. Same with any money that gets disbursed to the owners. Same with any money you need to put in for any capital improvements.And then... I the active manager took a monthly fee for property management. We kept that around market rate so that I would be fairly compensated. We also owned via an incorporated company, so I invoiced for that fee, which was then written off against the building, although my fee was then part of my income.In one case, because I was managing a substantial amount of work on renovating the building to bring up the value, we agreed that in 5 years, I was entitled to a 10 profit sharing. That is, I took 10 of the rise in value off the top, and then the rest was split proportionally. That was my bonus compensation for the extra work I was doing. But if your brother isnt doing a lot more than maintenance, then this may not be worthwhile.All of this was in writing.Id suggest something similar. Putting down a bigger part of the downpayment means that you are taking on a bigger part of the risk. Its simpler and more straightforward to keep everything proportional. If your brother is doing more of the work through active management, let him take a management fee that you mutually agree to--also, that way if you later decide to higher a property manager, everything else stays the same. 