Looking for advice on a deal

[Eric Maury]

Hey guys, 

I'm a part time investor, right now I own two units and I'm looking to expand. I recently connected with a developer and we've decided to go in on a property together. Last night he brings me in on a deal. It's a fully renovated 2 unit that we're looking to convert into an illegal 3. All in all the investment would require, call it 50K but netting conservatively 24k a year. 

The deal he's offering is that I cover the entire cost of the 5% down deposit and renovation cost (closing, miscellaneous, etc.) and in return, we each pull 12k annually. I'm wondering if this deal seems like i'm giving up too much. 

On one hand, he did the back end to bring me on to the deal, and will manage the reno and property and it will be under my name so all tax benefits will be on my end. On the other hand, I'm putting all the money down for this deal and am splitting income with someone with not a cent down. Even at those figures we're talking a 20-25% ROI and i'll see my money back in probably under 4 years with minimal work. But really looking to get some outside perspectives on this before I sign the dotted line.

Thanks guys, appreciate it!