If the real estate market pulls back, this "partner" has 100% of the risk of losing money.  

@Kenneth Soles  lastly to put it into perspective.this is not a shock to people if  you lose a home for tax's or non payment of Mortgage.. these folks have been dealing with this for in most cases years.... its not like you woke up one day and you lost your house.the folks that really have it rough though are tenants who did not know the landlord let the house go to foreclosure..

Most investors lose a TON of money by making amateur mistakes.

It's not uncommon to hear horror stories about getting into underwriting and losing your deal a week before closing because of incompetence or error.

Those recently built homes start to lose value because the comparable sales surrounding them that are "Not" new builds and are selling for less causing a standstill on those new homes.

We "lose" money on a cashflow basis, but completely comfortable with that as this is more of a 2nd home that renters help us pay for.

We "lose" money on a cashflow basis, but completely comfortable with that as this is more of a 2nd home that renters help us pay for.

They lose a ton of money through common mistakes.

If you take that same ambition to real estate, there's no way you'll lose. 

I don't think that's a good idea, you are not getting much of a discount, the property needs a lot of work and you don't have the capital (25% down plus rehab) or the experience to take it on.Most important for your first deal is that you have a good experience and not lose money.