OPM and borrowing entire down payment question.
If I were to borrow someone's money to put the down payment on a house and the investor didn't want to be paid back over a term but a forever 'dividend' (I guess). How would the money (rental profit) be split up typically? I would be doing the the tenant vetting, the maintenance, paying the bills and etc... I guess they would be an angel investor.
The way I think it would go would be: I find a good deal, borrow the money from the investor to purchase the property, refinance after rehabbing and then pay the investor back plus accrued interest with cash to spare (best case).
I wouldn't think partial cashflow would be an appealing return.
Justin