Plugging an average 30% management fee into the two examples above, the first owner would see his or her cashflow drop to about $8,000 per year (10% cap and 24% cash-on-cash return), while the second owner would see his or her cashflow go slightly (~$300) negative (6% cap and -1% cash-on-cash return).In contrast, if I were to approach an investor with an idea of a 50/50 JV agreement, where they put up the capital, I take no management fee, and we share equity and cashflow 50%, the first owner would see cashflow of $14,250 per year (38% cash-on-cash return), and the second owner would see cashflow of $3,500 per year (10% cash-on-cash return)--both significantly better than hiring a professional manager.Of course, in the second scenario, I would end up with less cashflow than I would managing the same property at 30% ($14,250 vs. $19,500 for the first and $3,500 vs. $7,200 for the second), but that's OK with me because now I have equity in the property (with a potential infinite rate of return if and when the property is sold).The question:So, would something like this be an equitable arrangement?

If you choose to go with the land contract, you will have a significant amount of negative carry. 

Amelia Moore I would not touch the student loan debt for three reasons1) It's at 2.5% and that is better than most mortgages 2) When you refi, you will have to take cash out and this will have a negative effect on the pricing of your loan.

Even if someone put down 20% and financed 4,160,000 it would still have negative cash flow with current rates obviously.

Negative cash flow is never an option.

@Tom LinnikRequest the death certificate from the county viatical statistics department.

Their interbank rate is negative now.

NEIGHBORHOOD, AREA AND PROPERTY CONDITIONS: Neighborhood or area conditions, including Agricultural Use Restrictions pursuant to the Williamson Act (Government Code §§51200-51295), Right To Farm Laws (Civil Code §3482.5 and §3482.6),schools, proximity and adequacy of law enforcement, crime statistics, the proximity of registered felons or offenders, fire protection, other government services, availability, adequacy and cost of any speed-wired, wireless internet connections or other telecommunications or other technology services and installations, proximity to commercial, industrial or agricultural activities, existing and proposed transportation, construction and development that may affect noise, view, or traffic, airport noise, noise or odor from any source, abandoned mining operations on the Property, wild and domestic animals, other nuisances, hazards, or circumstances, protected species, wetland properties, botanical diseases, historic or other governmentally protected sites or improvements, cemeteries, facilities and condition of common areas of common interest subdivisions, and possible lack of compliance with any governing documents or Homeowners' Association requirements, conditions and influences of significance to certain cultures and/or religions, and personal needs,requirements and preferences of Buyer.Things I'd suggest including is investigation of services and feasibility of connection to public services specifically.

Third, if you are considering not moving, doing a new build for an investment property can be a cash negative flow unless you are getting one heck of a deal on the land.

There are a lot of websites that monitor/ aggregate crime statistics. https://www.raidsonline.com/Websites like raidsonline aren't perfect indicators (for example, crime rates downtown appear high but the same market supports some of the most expensive apartments/ homes in Lexington), but they can be a useful starting point.