Mike:I'm enjoying the back and forth and understand the position of considering all sources of capital/cash as the same from an "everyday practicality" position ... but, I'm not certain my, or your, accountant would agree.Perhaps it's my background with operational companies (software, telecommunications, etc), but there was always a distinction between earnings & cash flow from operations and capital raised through other means (debt, asset sales, judgements, etc).  

My thought it most of us in the real estate game are here for the distinct advantages real estate has to offer from cash flow, appreciation, inflation hedge, tax benefits, etc.

They're similar, but they have distinctions that should be explained by a lawyer, and I'm not one.Which one of them is easier for financing is a question for - you guessed it - a lender, and I'm not one, either.For tax purposes, partnerships and JVs are the same: a partnership.A partnership may choose a different form of taxation, such as an S-corporation, for some specific tax benefits down the road, as @Ashish Acharya referred to.

You are at a distinct advantage knowing the condition of the house, others won't be able to enter the property.I don't see why you would want to but you could try to buy it on CD however the seller isn't likely to sell it below their loan amount and you would likely have to catchup the loan payments to make this work. 

Alex,I'm not sure what distinction you are looking for.

Whichever one has the equity to make your private lender feel secure, that's what you'd do the mortgage on.Yup, this will be a distinct mortgage, with it's own payment... that you can set up so it's ballpark what your proposed partnership plan would have paid the partner.Even though it's secured by a different property, you'd want to analyze the cashflow of the property keeping in mind that you're using some of that rental income to pay this private mortgage.You are maintaining 100% control of the asset, so you don't have to fight with your partner over how to deal with a pesky tenant, etc.

Even in the state that has the distinction of having the highest property taxes, 100% of my properties cash flow.It might be a good rule to be picky!

Make the clear distinction between your primary residence, and investment property.

There are two distinct risks:  (1) a correction in the real estate market; and (2) the risk of a recession - with us pushing past full employment, this looks ever more likely now, hence the Wall Street selloff.The recession risk is very important.  

Many don't make that distinction.