In multifamily value add type deals, you usually have a lower cash on cash in the first few years, and then most of the money is received on the sale after you have added all of the value and executed the full business plan.

Repeated flipping of homes or new home development for immediate sale are the types of things in the real estate space that can trigger UBIT.

But i recently came across a different type of investing strategy called owner finance.

Here are some recommendations for you:Read Beginner’s Guide: http://www.biggerpockets.com/real-estate-investingCheck out BP Podcasts: https://www.biggerpockets.com/podcastIf you wish to tag someone in the conversation on the forum, type @ followed by their name and then select the name of that person which should appear below the comments box.

Your decision is dependent upon your experience, your network of support, and what type of life you want to live.

I’m wondering what type of information I should prepare to present to this person as well as general tips for approaching a private investor.

Otherwise you can either try to find some local wholesalers or flippers (go to any local REIA meetings or other types of Investor meet ups), try selling it outright or simply find an agent willing to list it for you.

It's a relationship type business played on a local field.Take inventory of you strengths and interests.

People from the around the world want to invest here (especially in multi-family), and inventory is extremely low across all types of real estate, especially single family homes. 

Since you're going to live in the property, I would keep your property search focus to the type of house you'd like to live.