Best way to help a friend buy a home?

[Stacy W.]

Hello, I qualified for a mortgage at the high end of my affordability, and closing costs may be a problem.

My friend has offered to take on 50% of the home ownership for 1/3 of the monthly costs, as well as 1/3 of the closing costs. I plan to also have a renter/housemate, at least at first. He wants to co-own the home, but make me a renter, where I pay 2/3 of the rent (or 1/3 if there is a renter), and he pays 1/3. I would be living in the home, whereas my friend would continue to live in his home in another city. 

I would love to get opinions on:  1. Whether this sounds like a fair arrangement,  2. What are other options I can suggest,  3. Advantages and disadvantage of making the home a 'rental'. 

Thank you in advance for advice!