Investor Equity/Cash Flow Structure

[Scott Leezer]

I am newbie at real estate investing and I fit into the no or low money down category. I've identified a four-family that may have some great potential. It's in a highly appreciable area, the leases are month to month and way under market value, but the units may need some updating. I've run the numbers and it looks like the property could cash flow $28k annually, but would take an investment of $196k (20% down, $80k rehab, $15k closing).

There is someone with whom I've talked about investing in real estate together. He has the assets to invest, but doesn't want to put up with building renovations, tenants, etc. Additionally, he would be out of state and I would be local. Is there a way to structure the equity and cash flow split that would be fair?