Taking on Partner to Existing Fixed Rate Rental?

[Daniel Dietz]

Hello All, 

I have been talking to a property owner who is interested in bringing on a partner (me?) to a handful of existing rental properties that he has fixed rate loans on at under 4% and on average about 40% equity in. He would like to hand over management to someone but still keep the cash flow and have the lump sum of buying 50% of the equity for other interests that he would like to pursue.

Obviously he/we would love to keep the long term low rate financing in place. 

Is there a way I could 'buy half the equity' (20%) using a partnership agreement somehow that would not affect the 'due on sale clause'? I am assuming we would not want to form a new partnership and have him sell the whole thing to the new partnership as that would loose the loan terms and likely trigger a tax event for him too. 

Thoughts on how to accomplish this?

Thanks, Dan Dietz