Hello BP forums!  

I'm brand-new, came across the topic of real estate investment by way of Pinterest, when I searched, "passive income side hustles".  I thought, hmmmm, real estate is already in my wheel house - I got this!!  My husband and I are realtors who want out of the rat race, and like many people, I just want security. I want money rolling in monthly, no matter what. 

I have a lending question I'd like to pose to the forum.  (my finance IQ is subpar at best) My parents are private lenders, and have offered funds to us at 6%.  

We plan to use the BRRRR strategy. We do not have the money for a down payment, so I put on my creative financing cap, and thought, what if I structure the financing as two separate models. 80% of the money needed for the property and rehab would be private lending with the folks at the agreed upon 6%.  The other 20% could be looked at as more of an equity partnership, where my parents take 50% of the appreciation when we refinance??  

To clarify, the parents will receive their monthly payments on lending us 80% of the funds needed at 6% for our purchase, and 20% of the money lended would be an equity partnership where the parents would see their returns when we refinance.  (within 24 months assuming all goes as planned).  

This strategy seems to help with better money in-pocket for me, and actually was nearly the same exact rate of return for them when I run specific numbers.  

Essentially, sounded like a win-win, but am I missing something here?  Is this smart, or would I be taking advantage of my parents?  Are there implications when I go to refinance with structuring lending this way?  Tax implications??  

Thanks all, for any advice you have here, I need it, and I'm grateful!!