Partner Strategy to for No-Income
I sat down with a friend of mine who flips houses it Pittsburgh but comes down to Florida where I live to visit occasionally and we were talking about the differences in real estate in both of these areas. He mentioned in conversation that SFH start at around 50k there while here the minimum is 100k. He has been flipping homes for over 5 years and has been successful but in conversation he said he doesn't own any long term rentals but would like to because he uses all the money to buy fix and flips. Also it is very hard for him to get loan because he doesn't show a steady income (all he does is fix and flip).
That got me thinking, I have a steady income but don't have the cash to buy more properties (bought two in the last year) at the moment, and he has cash but can't get a loan, what if we partner on a long term rental in Pittsburgh where he is familiar with the area. I know there are multiple ways to partner and I wanted to ask if this is a good idea and what other ways I could make this work? If I did approach him about this I would use an attorney to formalize everything and do my due diligence on his business model, but what else should to protect both of us?
Justin