Is this a dumb idea?

[David Rosenhaus]

Newbie trying to get my mind right and formulate a plan to have $10k passive cash flow in 10 years or less. Because it's a time crunch, and I'm starting wayyy behind the 8-ball, I'm not really interested in equity (right now), just cash flow.

So my crazy idea is to partner with an investor whose focus is appreciation. Instead of a 50-50 (or whatever) split, they get all the equity and I get the cash flow.

Does that make sense and is it absurd?

Appreciate the feedback.

[Greg Scott]

You could do this but I can think of a lot of reasons why you wouldn't want to.  Probably the biggest is, how do you effectively partner with anyone when you have very divergent goals?

Your partner may want an expensive house in a nice area with no cash flow, but you might want one in a lower-priced area with great cash flow?   Would you upgrade to granite countertops if it raises the house value but hurts cash flow?  If the value goes up and you do a cash-out refi, who gets that?  Presumably your partner because it was related to equity.  But, after the cash-out refi, your cashflow goes down!

You say you are starting from behind.  If that is the case, you are more likely to catch up if you get both cash flow and equity.