Both, whatever is going to increase its return on investment the fastest (equity or cash).

Quote from @Tim Johnson: Has anyone seen an example of a lender combining debt with equity on a real estate deal?

There are stated or no income 2nd mortgage loans but typically these are fixed term and fixed payment type second mortgages meaning the interest rate usually doesnt fluctuate like a HELOC or home equity line of credit would fluctuate (prime + margin = annual rate calculated based on a monthly basis). 

Are you looking to increase cash flow with every sale and purchase or keep building equity to buy a larger property down the road?

Trapped equity???

If you do end up splitting profits and equity 50/50 then make sure you account for your management.

I have a primary house in Santa Maria CA that we are renting out and getting cash flow from it,  thinking of using the equity from that house to buy here in Orange County.

So some equity is there.

@Vinny MuliIf you have equity built up, can you do a cash out refi?

By securing favorable terms upfront, I aim to maximize my ROI when selling within a 3-5 year window.I believe that connecting with like-minded investors is key to continued growth and success in this industry.