Lending Short Term for a rental/house hack investment

[Andrew Sime]

I have a friend/realtor/potential partner that is interested in a property that he would buy and renovate and live in for 5+ years.  It is in a nice area and he would be able to rent it out 6 weekends each year for college football games which could net 8-10k total.  If he needs my cash to purchase and rehab can I legally just lend him the money with an agreement  (Note &  Mortgage or Trust Deed)?

Also, should I look at it as an investment partnership or more as though I am a hard money lender?  How would you structure?  Should I participate in rehab or let him make the calls since he will be living there?

Looking to get my capital back out in 2 years or less (unless worth risking the upside of the "flip" when he sells).  He has a house currently that he would sell that could be most or all of the payback on the note for my exit strategy. I would propose a 20%? annual return on my funds while they are tied up

Numbers:

Purchase price: 65k

My investment: Estimated at 28k for down payment (12k), rehab and closing costs

ARV: Estimate 110k