Buying with Someone As a Financial Partner

[Kurt Grossman]

99% of the investors that I have dealt with invest with their own money and make payments on a property then secure a tenant. 1% are investors with someone who wants to buy a property but can't quite make the down payment, income, or credit requirements. Has anyone done a Cash on Cash or Risk Reward analysis on Co-Buying property? Example: $500,000 home; 20%/$100K down; $400,000 loan; PITI; $2,465. Co-Buyer pays all the Closing Costs.

Co-Buyer Owner Occupant agrees to pay $3,465 per month for 5 years before refinancing to pay back the initial $100,000.

What's the ROI? What's the risk/reward? What's the legal challenge? Is it as good as the "normal" way; worse, equal, or better?