Buying a rental for my first foray into real estate

[Malcolm Pasquier]

Hey everyone I am very new to this but I have been trying to educate myself over the last 6 months or so.  Anyways this is my situation: I currently rent a room in a 4 bedroom 2 bath house that is estimated value is 279k the owner is willing to sell but isn't in a rush. His number that he would sell for is like 210k since he doesn't have to use a realtor or anything like that.  I don't have the money nor the credit to get a mortgage but I do have an associate that is interested in loaning me around 180 to maybe 200k.  The house itself has seen an increase in value of about 47% in the last 4 years and is expected to see a 6% increase over the next year.  My plan is to use my associates money to buy the house, hold on to it for about 5 or 6 years renting out the rooms in it for that amount of time.  After paying for the loan and all the other things that go along with the house, I would like to use the rest  to freshen it up a bit to resale as a single family home.  My question is what kind of terms should I expect or offer to my associate for use of his money.  I want to be fair to him but i also don't want to screw myself.  Any insight or advice is extremely appreciated and warmly welcomed. 

Thank  you in advance for your time.