Day 1 of BP, investing journey, and I need some advice

[Mason Snyder]

Hello everyone:

So today is day 1 on BP. I've been listening to the podcast for about a month now and am very excited for what 2016 holds. Before I get to my questions - I would like to provide some background as to what has peaked my interest in investing. 

Today I live in California and work in software sales. Back in October my wife and I went on our 5-year anniversary trip to Mexico. While on the trip we met another couple our age (early 30's) from Ohio and we hit it off. We spent the entire week with them, did a few excursions, dinners pretty much every night, etc. Our occupations came up in conversation and I learned that the guy is a contractor and that he flips houses in Ohio. I became very interested and bombarded him with questions. Basically he's done around 20-or-so flips and has about 8 rentals that he renovated and is managing. Towards the end of the week I asked him if he would ever be interested in partnering on some deals. He said he'd done some partner deals before and that he would be interested. I told him I have minimal access to cash (about $20k) I could put in. The majority of the properties he buys are sub-$50k foreclosure properties that he, on average, puts about $10k-$15k of work into, and sells for $100k+ (again, on average). 

Now I don't know a lot about real estate at this point, but I know enough to say that the market I live in would make it very tough for me to begin this journey on my own here. This is why I am choosing to start with a partner in an area that's a little easier to find affordable properties. 

About two weeks ago this couple flew out to California for his birthday to spend the weekend with us in San Francisco. I knew this trip would be good because it would allow for them to see how we live, and for us to further discuss partnering. He just finished up and has rented the two houses he bought the week before we met them in Cabo and is now ready to find another property. We've started an LLC and are in the process of putting an agreement in place. He and I discussed going in 50/50 on the property and then paying out him/his crew for the reno work and then splitting profits 50/50.

I would like BP's advice on anything I should know/do/consider in my first deal.

I told him I'm interested in flips to start so we can build some capital in the businesses name quicker and then we could look more into rentals - is this a good approach? If there's a solid deal on a potential rental would it be worth it to put in the only $20k I have for a slower return and then look to borrow against that home once ready for another deal?

I'd like to go about this without loans if possible and realize that can slow me down a bit - but are there significant advantages to building a portfolio faster with the debt?

What else should I consider?

Thank you in advance for your responses!