Apparently they take preferred interest in your company or have you sign a UCC cash flow agreement.

What is best for a newbie with little cash on hand?

Start researching price to rent ratios in areas and see which area has the best combination of cash flow/place you want to live!

The affordability and cash flow potential are real, but so are the challenges.

We would like to create a partnership where we are 50/50 partners and he brings the cash and I bring the experience, knowledge, and contacts ect.

Quote from @Carson Hyland: Even if you buy the right property, failing to manage it well will kill your cash flow. 

@Federico BuenoWith 6 bedrooms, your house hack has huge income potential, and you have multiple ways to maximize cash flow.

Quote from @Daniel Tanasa: Another option is to get a small cash out refinance from the house you plan on fixing up, if is in financeable condition, and use that to fix it up, while still cash flowing.

The 4-plex would produce around $1000/mo cash flow after financing, and that financing would recover your total build cost leaving you with no money in the deal at the end and an "infinite return" for CoC.

Stack cash & build credit.