I will go with a 50/50 JV where he doesn't charge any fees, we just split the profit 50/50 but I pay for everything.  

I do own 2 small Multifamily properties but I don’t think they show that much profit on the tax returns.  

College rentals are potentially more profitable but more difficult to manage.

However, @Bryan O. is correct, it would be better in this case to cut out the middle man, take any hit on maintenance, but reap a higher profit.

Of this $50K you need to rehab the house, pay any holding costs (loans, taxes, utilities) and take your profit.

If the present business does not generated the desired return at it's present price you are left with the option of offering a lower amount at which the property will work for you,  or moving along to the next opportunity.

Motivated seller selling me a 3/2 SFR but not sure what strategy to use.Property Details:Written Appraised Value - 134KPurchase Price - 90KRehab - 15KRent - 1,250/mthTax Rate - 2.54%Strategy 1:20-year mortgage, 4.63% interest, 20% downPurchase, rehab out of pocket, rent it, pay off the mortgage FASTER but collect LESS passive income.Strategy 2:30-year mortgage, 4.75% interest, 20% downPurchase, rehab out of pocket, rent it, pay off the mortgage SLOWER but collect MORE passive income.Strategy 3:25-year, 4.125% interest, 45% downAssume the current mortgage and pay the owner their profit of 40K.

I think Millenials, my generation, have a different mind-set when it comes to a lot of things, including investing.  

When done this way it perceived as "borrowing against equity" rather than a step transaction to access profit.  

We will share the down payment 50/50, and split any profits or costs in the same manner.