You`re forgetting mortgage paydown as well. My first property is essentially cashflow neutral, however, in addition to any possible appreciation, my tenants are paying down the principal on my mortgage by over 700$ per month.

Thanks for the advice guys, I guess guarenteed is a bad word to use given the nature of the business, prefered return or something of that nature would be more appropriate, I just want to make sure the potential partner is adequately compensated for the fact they will be taking the higher risk...

I was hoping you guys might be able to help me in terms of what sort of returns would a JV partner(s) be looking for to interest them in a potential deal. I had recently put together a proposal with a conservatively estimated ROI of 9%/yr with a guarenteed 4%/yr worst case scenario return...