These borrowers are typically out of the market for extended periods of time, have limited contacts in the debt world, lack understanding of how different loan programs work, and are susceptible to working with the one bank / credit union loan officer that they know through their family, friends, church group, college, etc.

If I put myself in the shoes of the outside partner/investor friend, I would be very concerned because: 1) unclear and/or potentially conflicting business plan, 2) even with clarity in the BRRRR business plan, unclear in the viability of pulling it off with these market conditions, 3) the chances of dispute seems very high, especially if you're going to live in. 4 years ago, I went through a  similar thought process when purchasing an investing property with mainly my family money, while considering an outside investor to rehab for higher STR ROI... 

BTW, a lot also depends on which state you are in .Here in Texas, its much more landlord friendly than other areas.

BTW, the rental property is cash flow positive.Bob,My firm's managing partner wrote the IRS guidelines for cost segregation, so I've got some insights for you.

While I know this isn't a lot in today's market, I believe there are creative ways to make it work.I’m a former foster child who was declared independent as a teen, so I've been living with close friends that I consider family.

@Duarte MarquesPossibly but highly not recommendedFor those with no real estate experience or experience in taking on debt, it’s not easyTo do it also with little to no down payment or reserves in most occasions will end in disasterReminds me of when in high school a friend used to let his dog drive his car.

@Rich Davis "The difference is I'm in Maine, where the evictions laws lean landlord friendly.

Hey John,I work with several different property managers, which I refer to for my clients (I'm an investor friendly agent over here).

I have had many conversations with her friends about the differences in our markets and  have recognized for a while now that there may be some mutually beneficial opportunities to work with Canadian investor specifically. 

I wouldn't say it's automated, but it's a user friendly CRM so far.