Using Investors to Replace your Apartment Down Payment?

[Pete Sailhamer]

I've been investing in 1-4 unit investment buildings (buy and hold) and recently have begun to look into apartment complexes.  After reading a lot about creative ways to fund the down payment by partnering with private investors, a strategy that wasn't ever mentioned is as follows:

Fund the deal with a bank and provide the 20% down payment out of my own funds.  After one year, or long enough to show future investors that the numbers DO actually perform, open the opportunity up for investors as a second mortgage (in the amount of the 20%) and provide them a fixed return (8-10%), after of course running the numbers to ensure it still cash flows with this second mortgage.  

The benefits are: 1) Less risky investment for investors because they can see the numbers performing in real time.  2) More confidence for me in not losing someone else's money (i.e. test it with my own first)  3)  I as the investor get my money back and can move on to the next deal.

Is this logical, has anyone done this before?  What considerations are there for doing this?  Would the bank care at all, as long as they are still getting their mortgage payment every week?  Would this simply be a Promissory Note that a local Real Estate attorney could draft?

Thanks for any feedback!