For this time period I am on the sidelines for Sac and surrounding area and am actively making offers in Phoenix metro area.Good luck and let us know what happens!

If you really trust this person (and you should determine his/her reputation and references asap) Get a good contract and a good lawyer to review all.But looks like if the numbers make sense, you'd rather have 50% of something and learn the game then 100% of nothing and stay on the sidelines. 

They have added up to a sizable portfolio as many of my colleagues sat on the sidelines looking for their golden goose.

Fear of failing will keep you sitting on the sidelines watching as a spectator.

An injury sidelined me and so I took a desk job doing marketing and communications for an incredible design/build firm in high end residential remodeling and new homes.  

I'm living in Toronto sitting on the sidelines waiting to make my first deal.  

Don't let analysis paralysis make you sit on the sidelines for too long!

Frank I am not an expert on tax liens but I hear there certain states you can only receive a prorated amount of return for the days the lien has been in place versus states that provide a min return even if the tax lien is paid back in 2 days. so this might affect your returns depending on when and what day you put your money to work and when you get it back out along with the time the money sits on the sidelines idly while it searches for the next deal earning 0-.75% in a checking/savings account.On the rental end, like others have mentioned you may miss out on appreciation, and amortization of the loan balance, but the main difference I believe is the tax shield effect of depreciation.

Seems like Bend has historically been cyclical, so maybe our best bet is to sit on the sidelines and wait for the next downturn.  

A great way to safely get off of the sidelines and into the market on your first deal is by doing exactly what you are proposing... house hacking.