Nope; other than setting aside any extra cash flow that you don't need for its reserves, to add to your savings from your own income, to quicker get another deposit together - for a better bargain.

I am expecting a ROI of 9% after figuring in property management and capex reserve. 

I've put together a quick proforma and I wanted to get some (semi-)professional opinions.Case Study:Cash deal (no financing for purchasing/rehabbing)Asset ~$20,000; Rehab ~$3,000; Closing costs/fees ~$2,000Total out-of-pocket: ~$25,0002-3 Bedrooms, 1-2 Baths; Rent $700-$850Annual Gross Revenue: ~$9,000Property Tax ~$1,500; Property Insurance ~$1,000; Property Management ~$1,000; Vacancy Loss ~$1,000; Replacement Reserves ~$1,000Annual Operating Expenses: ~$5,500Annual Net Profit: ~$3,500Cash on Cash: $3,500/$25,000 = 14.0%Risk Profile:Rental properties in low-income areas carries the risk of vacancy, damages, delinquent payments, and evictions.Risk Mitigation:I see paying a Property Management company as being a great way to help with: sourcing the most reliable tenants, bi-annual interior/exterior inspections, and handling the delinquencies/evictions. 

Lastly, I have met a contractor in the local area that is interested in doing a deal, but he does not have the cash reserves to do a 50/50 deal (In my opinion).

If you do decide to do it, I would keep $10k+ in reserves in the event that there are problems with flooding that come up at some point.

It is a reinvestment of capital.It is often acquired by setting aside a portion of retained earnings in a reserve.  

I am paying off higher rate mortgages at about $22k/mo because I don't like earning .1% per year in a savings account and my acquisition and reserve accts are already funded.

During DD I would not only be analyzing the financials of the fractured units you are purchasing, but also taking a deep dive into the HOA financials to examine their budget, determine reserves, etc.

Life will be a whole lot easier if you're patient than if you jump into a thin deal now with no income and little reserves and a ticking clock on a pile of student loan debt. 

This involves: Providing capital in a timely manner for pre-approved deals.Ownership is allocated in the following way: The asset manager owns 20% of each property.The other 80% is owned by those who provide the financing for the deal, with no distinction between leverage and cash.Partner’s percentage of interest in the company is the net percentage of capital contributed across all properties, multiplied by 0.80.When new assets are added to the company, percentage of ownership is recalculated.If cash infusions are required for major improvements not covered by reserves, we recalculate percentage.Distributions are paid quarterly based on profits, on the 1st of the month, based on a percentage of ownership.Now here comes the question: If I cash-out refi the property, is that my capital contribution, or his?