Being that you don't know him that well - the potential of $3k in profit does not out weight the risk of injecting $10k into this deal. 

You both have given me a lot to think about.Wheatie: that was just the "out of the box" thinking that I was hoping for.Gainsvillej: you injected a bit of caution on behalf of the argument, which was awesome.My question to you both is based on the suggestions that you both made, is there anything that you've seen work better & are there any options that you have yet to think of or mention.Wheatie you're right.

Additionally, it's easier to admit a partner in an entity than to dance around lending requirements, then they can act from a capital injection stand point rather than a lender or borrower. 

Daniel....and others, just a note on using a note to secure your interests:Be careful that you use a contract for your equity position or profits from an arrangement and use the note to secure actual cash injected to make repairs or improvements, the note can only secure cash as a loan, unless;you hold a license as a contractor or an agent as commissions, or if your labor is by contract and is customary for the work performed. 1.

The money partner is injecting 90% of the purchase price into the deal but it’s short term.

If you’d like to keep some of these answers from the general public, shoot me a message and we can drill down further.With that said, there is a ton of money being injected into Long Beach and the future outlook of Long Beach as a whole is bright.

He bought most in 2010-2014, cash-flowed, and then injects about $25K into them and sells.

When I saw the property, the owner’s contractor was there Watweproofing the basement with foam, concrete injections and drylock paint.

@Roseann Koefoed Getting the water bill under control could be a GREAT way to increase that NOI without injecting too much capital into physical renovations. 

Cap rates are useful for brokers or lenders who need a frame of reference to compare their hundreds of similar deals but for you as an investor, cap rates are meaningless.Predicting your future cap rate at sale is near impossible and any amount of value-add you inject into the asset will drastically alter the NOI.The safest thing you can do is to assume that the market will continue to worsen as you hold an asset.