Is this equitable?

This posting has nothing to do with mobile homes but I hope I can get the benefit of your collective knowledge anyway.

Another investor, who I have known for several years, and I are looking to buy some SFRs. I would put up all the money (there would be no mortgages) and be a 50% owner. Upon sale, I get all my money back plus 1/2 of the appreciation. He does the home selection, tenant selection and management. I may do some repairs/landscaping. I would get 40% of cash flow and he would get 60%. There are still a lot of details to work out and we are in no hurry to buy anything until we have our partnership goals/agreement in place.

Putting aside your thoughts on this asset class (I know, I know; this is a mobile home park forum.), does the above scenario sound reasonable? What about any danger areas you can think of?



Wheat HIll