Friend offering loan for down payment.

[Justin Bearce]

Hello, I am looking to get into an FHA loan on a multifamily home. My friend is offering an investment just for the down payment. I could have the down payment in a few months but somewhere near the finish line I'll be couch surfing as I am moving for my job, and will also need to Uber for some extra cash.

So the homes I am looking at are around $125k. With an FHA loan I would need just over $4k. This will be my first property and I will occupy a unit. My friend wants to build his money and would like me to keep it for 5 years with a 12-15% APR.

I am wondering if this is a reasonable idea or if it makes a lot more sense to couch surf and save. The cash on cash ROI would be about 60% for the property since the FHA requires very little money to get up and running. I personally like the idea of not couch suflrfing, but o really don't want to put myself in a situation I may regret. It seems the cost has a minimum impact on my yearly take home.

[Justin Bearce]

@Christopher Phillips Okay so my current plan would definitely be to buy something else when the time comes. I also would plan on moving myself into a single family within a couple years.  My goal is to buy and hold rental properties to create a passive income.  So I will be missing out on this exemption for most of them anyway.

So if I understand this properly, I could have him Co-sign the loan with me and he could pay the down payment and I could pay the closing fees. And I could agree to give him X percent of profits from rent as a partner?