For instance, I did a BRRRR deal in Cicero, IL last year on a six unit and I was not able to get 20% of my capital out of the deal because banks tightened up commercial lending during the start of the pandemic big time.

Also, if you plan on partnering with this individual long-term, I think a 50/50 will induce less strain on the relationship.

You'll just want to find one with some staying power, so it won't be closed when credit markets tighten. 

I know custodians administering these distributions aren't asking for proof of financial strain. 

If the tenants don't have anything nice to say about their landlord, their relationship could be strained.

Since the property already had tenants in it - we did not want to put undue strain on them immediately.

Lines of credit on investment property have tightened up greatly.

Most expensive things would be A/C unit and furnace if they weren't operational.The reason for buying this house is so that I could focus more on generating my passive income without the strain of having to work a 9-5 while also running my business.

This product is no longer available from them with the most recent tightening in the Non-Qm market.

One way they try to reverse this trend is to tighten up on the underwriting guidelines.