The offer sounds tempting since  the group has to finance about 3M$ (the rest comes from a bank with a low interest) and the building is bought about 1.5M below value, so when we sell we should expect a 50% return when selling which should be 3 years from now.The thing that bugs me is the way the building value was evaluated, i am copying a section from the presentation:"Market activity has shown similar properties consistently trading in the 4.75-5.25% cap range (refer to “Comparables” slide for specifics).

Sometimes cap rate compression is a signal that rent growth is expected.

I really just expected someone to say hello. 

Figure out what percentage return he expects, and then base your equity split on that expectation combined with the actual financials when you buy.

I am in a similar situation; so my advice has no proof to back it, or value really...But, is the gain expected (on property flip/rentals) and probability of that gain 'WORTH' it to risk, over paying off debt that will forever follow you?

Situation:As a first time home buyer, and first time flipper, Fiancee and I expect a 2 year property to avoid Capital Tax Gain, and allow for time to DIY as much as we can comfortably do.

It's been almost 4 months past the expected completion date.

However, I still expect average occupancy rate of 80 - 90% is very much possible.On average as an investor, I would expect to earn between 8 - 12% ROI, if you are doing everything right.All the best!

If you actually want to flip in CA you will need to focus on other metrics and have realistic expectations. 

If the property had been mortgaged and payments on the mortgage stop, then expect the lender to get involved, in which case I would walk away rather than waste my time on it.