Cash flowThis might just be the wrong property but even in this scenario, over a longer time horizon, you will come out ahead if utilizing leverage. 

Think about this more holistically and consider absolute returns over a 10 year horizon as opposed to cash flow from day 1. 

The only instances in which these do seem to work for me are when an up-front loan can be replaced by a cash-out refinance from a traditional lender.In other words, equity partners are totally fine with slow payback over long time horizons, whereas debt partners are not.The people in question for this specific instance have explicitly requested long-term "unlimited" upside vs short-term fixed upsideAlso, I am comfortable at this point doing a BRRRR with my own cash, but am not yet comfortable enough to be relatively certain that I'll be able to pull enough capital out to pay-back a short-term loan without getting burned.With all that said, my sister-in-law is a contract attorney with a lot of experiences in creating operating agreements.

I wish I had a solution to your problem but we are all in it right now with no solutions on the horizon (especially for those of us on the West Coast). 

The most important factor is your time horizon. 

There's a lot of ways to skin the cat, but you can get in the game without thinking I need massive discounts or need to put in massive work.As long as your investment time horizon is long term, as in 8 years plus ideally 12-15.

Good evening BP members,
I am a week away from my closing date on my first property! Broke free of the "analysis paralysis" syndrome!! I have a rookie question in terms of management. After ensuring I had done all m...

I can continue to keep replicating a stable model (with my SFHs) and proceed until I hit my "magic number", or I can break out into a new model and attempt this in MFH (which in my mind is more likely to provide me with greater chance of reaching my goals of greater cashflow and scalability in a shorter time horizon).  

Risk tolerance, access to capital, budget, cash flow vs appreciation potential, time-horizon for your goals. 

If you absolutely feel comfortable making the payments (and could make them even without a renter) then I think it makes sense over a long time horizon.