Split Half the Downpayment w/ a Business Partner?

[Susan Tan]

I have a creative financing idea that I want to run by you all. What is your feedback on the legal & tax ramifications?

I'm planning to buy a rent-ready vacant fourplex in Cincinnati, OH. I don't have enough cash for the downpayment so I decide to bring on a passive business partner who helps pay for 50% of the downpayment & closing costs while I get the title & deed. In return the business partner gets a monthly rent check starting on closing date for up to 1 year. After that 1 year is over, I pay back the 50% of downpayment & closing costs directly to the business partner and the partner no longer gets the rent checks. I have the property manager, realtor, contractor, and lender contacts in place while the passive business partner brings only money to table. What can go wrong?