This doesn't quite go to the point of your question, but if you haven't already factored this in, you should look into doing a 1031 exchange to defer paying taxes on your sale.

Chris It would be very interesting to see comparisons of actual cash flow or net rents received over a 3 to 5 year period from 8 caps from tK or 12 cap from tKI will wager you a ride in my new jet... that the 8% wins out.

What are you offering on exchange for help?

Look into a 1031 exchange, also if you have lived there for even a short amount of time it could be considered your second/vacation home and taxed as a primary residence.

I presume he is selling the house in the end {for which he will get commission}.What else is he contributing in exchange for 50% of the net profit?

Also there are a handful of San Francisco Bay Area BP'ers who have started meeting informally to network and exchange ideas.

Offer to look at properties for them in exchange for him/her teaching you how to evaluate deals, estimate costs, etc.

Besides the normal precautions with having a tenant do work in exchange for rent, would you advise installing granite in a rental?

The only way around it is a 1031 exchange.

Require a minimum 60 days from the time they excersize their option to the time you close and use that time to find another investment to 1031 exchange the capital gains into another property tax free.