Can a Friend Invest In My Properties?

[Lee Kulow]

Hi, I currently have 2 rental properties with about $140,000 in equity and they cashflow a little over $550/month. My friend approached me about investing in rental properties together. I thought about doing a cash out refinance to invest in a new property with him but another idea crossed my mind: I could have him invest capital into my current properties by buying equity from me and I could then use that capital.  

First question, does this make any sense at all? Second, how could we structure the deal to make sense for both of us? I would be the property manager and he would be more of a silent investor. 

Thanks!

[Ty Hanson]

Don't muddy the waters on your already successful property. Find a property with your friend and create a 50/50 partnership.