What's your OPM structure/strategy for SFR buy & hold?

[Powell Chee]

Hello BP,

I live in Los Angeles and own 1 property in Kansas City, which I purchased last year.  It's going well so far and I plan to purchase more out of state rentals.  However after a few more properties, I soon will run out of my own cash.  While talking with others about what I do and why, I have been able to generate a good amount of interest in others partnering with me.  

My question is what structure do you suggest I use for the OPM that I raise for out of state SFRs?  Joint venture where both the OPM and I are co-owners, and we share in the profits? A lender-borrower structure where I borrow their money and pay them a certain rate of return?  Something else?

My goal would be to own as many of the properties as possible, whether by owning it right away or by refinancing it after about 3 years and paying off the investor.

Any thoughts or suggestions?