Normally the terms might be x% return in y Months or the return of investment after the sale and Z% of the gains from the sale. 

@Seda HoweI am 100% for taking a 401K loan as a down payment on a rental property.1) The fees on a 401K loan are normally subsidized by your employer.

@Aaron AlsupLenders normally add back depreciation and certain 'one time' expenses such as major repairs/renovations.Best of luck.

This is a normal occurrence in my dealings in small multifamily. 

My plan would be to do this for a couple years and either I'd find another creative finance deal to buy for myself and rent the 3/2 out normally and after 2/3 years of credit to refinance the property and get it on my own loan.

Grease buildup because of normal wear and tear wouldn’t be the tenant’s responsibility.

This deal is not in my normal market, I'm 2 hrs away and essentially running this flip Like OOS

John Warren, that makes a lot of sense for the other partner to have some skin in the game.

We normally do not approve applicants with any court records of evictions or judgments. 

Normally each group of renting nuns had to send a payment request each month to their AP department, and because the nuns often travel, inefficiency in the AP department, I was told getting timely checks would take quite a bit of effort.