Home Investor Scenario HELP

[Breland Almadova]

Help!!! What would be the correct way to handle this scenario?

I buy a property ($200k) using a conventional loan. All closing cost are $40k. My name is on the loan for $160k mortgage. Furnishing house is $2000. So total cash invested is $42,000. I am also living in the home.

A friend/investor wants to get in on the investment as a silent investor and split the $42,000 in initial cost, giving me $21,000. He will also match whatever I put in to cover mortgage and expenses. Let’s say monthly expenses including mortgage and taxes is $1000 so we both pay $500 a month. 

Now, in a perfect world, Let’s say I sell the home in 2 years at $250,000, and there’s no mortgage left, property is now owned. Does that $250,000 from the sale become split between my friend and I 50/50?

Another scenario, let’s say we sell the home for $250,000 and there’s still a $50,000 mortgage on it. Profit $200,000, do we split that profit 50/50?

Another scenario, we end up renting the full property for $2000, $1500 covers the mortgage and taxes, leaving us with $500 cash flow, do we split the $500 in cash flow 50/50?

How would you do this? All advice welcomed! Remember, my name is on the loan.

Thank you!