There's no guarantee your partner, whose only skin in the game is reputation, won't rip you off, head to Vegas and go on one heck of a bender.

Or does this interfere with the "skin in the game clause?"

The best thing you can do starting out is build a strong team around you, and partner up with an experienced investor while you get some skin in the game for your first few investments.

Ceteris paribus, a person's motivation can be determined by how much skin they have in the game. 

It takes some thick skin and fist biting, but treating tenants with respect, no matter how nasty they get, having the "customer is right" (within reason of course) and  excellent customer service PM companies are outnumbered by the PM companies that want to fight with tenants.

Hi @John Scully FHA is a wonderful product because you can start with little skin in the game.

They've got to either put more skin in the game that makes you whole or make it worth your while from a payment / cash flow perspective.  

@Abdul Rahman, having $20k as "skin in the game" DOES make a difference to my response.

The hard money lender will probably want to put a (2nd) lien on the property, and the title/escrow/attorney should disclose that to them.If you're trying to find it with a bank, I doubt even gap funders / private money would work because the bank wants to see your skin in the game as a borrower. 

While a 203K loan may make those concerns go away, you'd have to have really thick skin to do a short sale AND a 203K loan at the same time.