If let's say my strategy is not value-add and my NOI remains the same, say on year 5 until year 10 but the interest rate goes up 100 basis points during those years, my cashflow actually drops because of the higher debt service.

I’m continuing to do more research but every day it sounds like Note investing is what I’m looking to do.

Ultimately- you're cash basis. 

But that 4% per 3 decades pay raise is on the per appraisal basis.

For instance, how would the basis be calculated?

That's the basis they use for transferring the asset into REO.

Your HELOC will adjust every day. 

Where I am confused is to how to best word a partnership agreement to be reimbursed and how that would affect my cost basis in relation to my partners?

I didn't pay him anything so far.We didn't sign any paper because he came to my house looked into work, I gave him printed list of work, I was hoping he will add all this work in his formal document and send to me for sign, but instead he told he has employees working for him, and next two days he has nothing to do, so can he start..I said yes.So, If I don't want to continue, because the way he is working, he may take whole year.what should I do, how to decide , whatever he did in two days, what I should pay for that, also this is a mental harassment for me also, everyday is type of reserved for me, I can't plan anything.

We have about 300+ people moving into our county every day (employment is booming) so housing is in high demand.