Creative financing vs. my future mistake, which is which?

[Jordan Wagner]

Hi all,

So I have an off market deal in my 16801 market that I want to go in on as a buy and hold due to the ability to make it cash flow positive way higher than it currently is, hopefully on day 1 but at the worst within the 1st month. The question is which financing is going to be best out of the options below:

1. Use an FHA through a partnership with a family member. I would do the financing and my family member would self manage at the property and get a cut of the cash flow, this to me is a low money down option and also not very time consuming as I would not be the boots on the ground. To be clear I would be a cosigner/partner in the deal and it would be my family member using her FHA.

2. Use a private lender/partner. I don't  have the cash on hand for a conventional loan to be able to put 15-25% down so would need a partner or private lender that can work with me on the financing, and I would handle everything else involved with a buy and hold rental.  With this particular deal even with splitting the cash flow 50/50 it would still be worthwhile for a partnership. 

Thoughts, advice, interest in hearing more about this deal? Feel free to reply to this or private message me. Thanks all!