FHA Joint Venture Partnering in LA/OC area

[Jeffrey Magenes]

Here's the idea

Interest rates are so low that it's offsetting the big housing price increases we've seen in Southern California. That is, your monthly payment is still very affordable and will still let you cash flow, with low money down through a FHA loan with a first time home buyer.

I know quite a bit of people in their late 20's, early 30's that are perfect candidates for FHA loans but just need the extra push; whether it be through taking care of the landlord duties, or even helping with down payment funds.

Here's an example situation and please let me know if this is possible

A friend of mine in his late 20's and qualifies to purchase a 2-3 plex at $500,000. Can I joint venture with him so that he purchases the property with an FHA loan under his name and all he has to do is live in one of the units? I would handle the landlording and take care of everything else (maintenance/repairs), and in a couple years we sell the property at a profit or possibly sell the mortgage with a wrap at a much higher interest rate than what we see now (4-5%)? Does anybody have examples of deals they have done in the past?