Need help with financing between friends

[Alex Couden]

I am in the starting process of finding my first property for the purpose of holding. There is a good opportunity in my neighborhood on a property that is in the middle of a remodel but the owner has to sell due to poor health. I started looking into bank financing and was discussing it with a retired friend of mine. He suggested loaning me the money to purchase the property with me putting 20% down. My partners contractor quoted appx 10k to finish the remodel which he said he would pay and I have 10k to put down. He said a 3.75% interest rate would work well for him. He asked I make a proposal on paper he could review. I have no idea where to start here or what a proper arrangement should be. Approximate deal details below. Selling price: $55000 Duplex with 2 1 bedroom apts that average rent in the area is $500/mo per. Appx cost quoted to finish remodel is $10000. This house sold for 70k in 2013. Let me know if any other info is needed.