no smoking, drinking, eating out, and very little entertainment for her.

She won't do selling-financing, tenant doesn't have the funds purchase, starting asking friends/family to see if they want to be passive investors but have not had any luck yet, I have a HML I work with but need ~$50k down and points eat into the profits on such a smaller spread. 

This loan type would be very specific on requiring you to have 2 years of tax returns if you are self employed. 

Advantages for me: slightly less paperwork, fast approvals, leeway if your credit score is borderline for a specific rate, relationships, flexibility to lend on properties that need significant repairs.Main con is slightly higher than average interest rates and shorter terms, for me at least.  5-6% and 20 year amortization is generally what I'm paying.Hope that helps,- Tom

If you are specific about what you mean by an "investor," an Agent will be more helpful. 

I owe specific thanks to @Scott Trench for his book, Set For Life, which played a big part in my decision making process, as well as @Brandon Turner and @Joshua Dorkin.I've spent the last 3 years behind a desk as an MLO for one the country's biggest hard money lender, working specifically with brokers across the country to facilitate loans on behalf of their clients, and the learnings from that position and the time I've spent on BP, reading the BP publications and forums has given me the confidence to undertake this life changing pursuit.If you or someone you know/partner with is looking for financing on any upcoming real estate investment, let me know - I strive to be of value and have an extensive lender network to ensure quick terms and reliable financing.

I don't like borrowing too much and eating up my cash flow

@Dave Foster or @Bill Exeter can give more specific details.

You'll pocket a bit each month, but when you have an expense or vacancy it will eat that up.

And yes you can allocate the partnership item 50 50 but the agreement needs to have specific languages such as deficit makeup requirement and other that shows both the partner bears an economic loss in the partnership.