Working closely with a lender experienced in San Antonio's real estate market can provide valuable insights and competitive rates.Upgrade and Enhance: Consider renovations or upgrades that can increase rental income and property value.

We use a national supply house for everything and do mostly builder grade with upgrades where they need to be at.

The only upgrade I made to the condo while there was a fresh paint job that was done by my generous brother-in-law FOR FREE (minus materials) and the epoxy I handled myself in the garage.

@Albert Johnson I recently did an “upgrade” ($10,000ish) for an extremely vocal tenant.

I turned that home into 3 paid off rentals (one of which I lived in for two years), and upgraded my primary residence in which the mortgage is now paid by my rentals. 

Are you ready to upgrade your primary and turn your current home into a rental?

Always over estimate upgrades or flips.

That's a great way to go to upgrade a property you're looking to purchase.

Operational efficiency is also crucial; optimizing operating expenses and implementing tenant retention strategies, such as lease renewal incentives or adding desirable amenities, can stabilize your cash flow and reduce costs, helping maintain profitability even if rents decrease.Investing in property improvements, such as value-add opportunities and energy-efficient upgrades, can command higher rents and retain property value better than average units.

I think you may want to start of the arrangement in a more simple fashion.Ask for a loan in which he will get a stated return 6% to 12%.If you are both successful happy with this arrangement, upgrade to a partnership.I think a partnership off the bat makes things complicated.You will also likely make more money in a loan agreement if the project does well.