Partnering on a MF purchase: providing the down-payment

[Ilya Z.]

Apologies if this is the best forum for this discussion but I could not find a better one.

I have a few SF rentals but want to explore the next big step and delve into MF investment.

I was approached by an investor to partner on a deal. He's buying 4 small MF properties in the same town (11 units combined). All except for 2 of the units are rented out by tenants that are supposedly reliable and have been paying steadily even through COVID (I think most of them are retired and/or are receiving some sort of Govt assistance). The total sale price is about $550K. He prequalified for a 80% commercial loan and is offering me to invest $160K that would cover downpayment, closing costs and the 3-month reserves that the lender requested. In return he's giving me 50% of rent profit and 50% of the equity.

This type of partnership is a totally new type of beast for me, so what questions should I be asking?

Thank you!