Buying homes with partner, avoiding PMI, structuring deal

[David Kay]

I have the following idea, that I'd like feedback on.

I am looking to do the following:

1.) Form an LLC with a partner

2.) Have the partner put down 20% of the purchase price

3.) I pay all closing costs, and mortgage the rest

4.) I pay a return of 10% per year on my partner's money, for 10 years

5.) After 10 years, the partner is paid 20% of the property's appreciation to "buy him out" and he then leaves the LLC

A few questions:

1.) With the above model, do I avoid PMI? I would start with a owner occupied residential loan, then move onto commercial loans.

2.) Is the above model scalable? Assume I have a high income.

3.) How does a return of 10% + appreciation sound for an investor?

Any feedback would be great.