Thanks Tyler  They have 18 reviews on google - so I would check that out as well. 

Will this impact our ability to get competitive financing (we are both well qualified as individuals and even more so together)?

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.

Just make sure your LTR tenants keep their units nice, so your STR units' market well.  

Well, well well...isn't that interesting...

If not you will have to cover the cost for both (unless you have a well). 

@Viral Patel, I'm sure the process will vary from state to state but generally when a tradesman files for a mechanics lien, I think they attach the property at that point probably with something like a lis pendens which is basically a notice that pending litigation could affect the title to the property.

On top of that these markets have done very well in terms of appreciating in the last 5 year (See Memphis 50% increase, See Detroit 100% increase).

I did the Brian Page program myself and I have to say it worked well and it was worth it.

Just make sure you know how your going to setup your take-out/permanent financing before you start this process as cashout refi's for conventional have seasoning requirements now and delayed financing has rules and timelines as well.