Thought this would be a great idea because he contributes a lot of sweat equity into the deal.

What I typically do to offset this is to look at the property from the POV of a flipper ... that is, buy it under retail turnkey market value and add value via forced appreciation and sweat equity.

I can paint, mud and tape - even "sweat" pipes.

I knew going forward that I was going to need to offset the rehab cost with sweat equity.

To me, that is mid to high income real estate, its less about cash flow and adding value through your sweat equity, and more about diversification, appreciation, etc.

Hard to come by with no sweat equity and headaches.However, you lose the benefit of leverage unless you use margin, but it would not be as extreme.I think it's a great way to build your asset column then diversify with RE.u do

Can I ask here if someone is interested in putting in sweat equity to own a stake in it? 

., rehab) vs. putting in a lot of the sweat equity. 

Great comments from Joe and Henry:I too have done deals where the buyer did a lot of sweat equity  and turn a ugly ducking i sold them into a beautiful home for their family.

A little sweat equity in managing the property before hand allowed me to lower risk, understand the building better than a dozen inspections could have, and allowed me to hit the ground running at closing with a fully occupied building, great relationships with he tenants, and systems in place to cash flow day one.