50% partnership opinions

[Bryan Otto]

I want to move fast on a deal and can't wait for financing to come in. At 20% down i calculate a cap rate of 7.5% and cash on cash of 12%. I've have a 50/50 offer from a hard money lender. They would buy 1/2 property and i would buy 1/2. They would finance my half at 5% with 20% down. I like the idea but want to know if anyone has experience with this type of deal.

here are some of my concerns:

how would income taxes work?

what is the exit plan is one party wants to sell?

should we LLC?

thanks for any insight