Partnership on a househack: What kind of deal would you accept?

[Allen Duan]

Hi everyone, 

I'm super excited to get started investing in real estate and my current goal is a househack of a duplex or triplex here in Los Angeles where I live. Because I'm a business owner/self employed, my finances only qualify me for a 15% down payment loan. I would need to find the cash to cover the down payment, but I'm good to go with our portion of the mortgage/PITI. We would either find a vacant property or convert the other units to mid term rentals once the long term tenants move out. (I own a mid term rental management business, so I got that part nailed down.)

My question is, would it make sense to an investor to partner with me and provide the cash for the down payment? The property wouldn't cash flow unless I choose to pay more than I need to for the (PITI - rental income). Would it be attractive enough if, let's say, I offered the partner 60% of equity and future cash flow? My family would probably move out of our unit in 2-4 years and at that point there would definitely be positive cash flow renting out all units as MTRs.

Here's the summary of what I'm thinking of offering a cash partner.

-They would get 60% equity and 60% of cash flow

-Cash flow won't be positive until 2-4 years later

-When we eventually cash out refi to buy our next property, which may be in 2-4 years as well, the partner would get their 60%

-If this isn't attractive enough of a deal, would 70% or even higher make it worthwhile?

I'm fully on board with the idea that the most valuable thing about my first deal is all the learning I would get. This is why I'm not worried about getting a smaller share of the property if it means I can get the snowball started. Added bonus would be a better home for my family since we're renting now.

I appreciate your feedback. Feel free to pick apart my plan and ideas =)