What's a good way to structure a deal with a family member

[Scott M McPherson]

Hi all! I'm just starting real estate investing and trying to figure out how to work a deal with a family member that has the cash.

I'm thinking something like this.

- I find a good deal on a single family that needs a lot of cosmetic rehabs (I can do that) but has good bones and is in a desirable neighborhood

- Family member puts up the down payment and sets up the mortgage

- I live in the house for one year and fix it up while living there, using my money. I also cover the mortgage expense while living there

- After a year is up, rent the house, and the rent would go towards the mortgage. I would manage the rental.

- Rinse and repeat

It would be a 50-50 split on equity.

Has anyone ever taken this approach? Does it sound fair and reasonable?