Best way to structure a SFH partnership

[Andrew Pappas]

I found a motivated seller who owns multiple single family homes with about 50% equity in each. He loses money every month because his interest rates are so high, and he is unable to refinance because his DTI is too high. He is looking to partner with someone who can take a mortgage in his/her name at a better rate. My idea is to create an LLC with each of us having 50% ownership, and the LLC buys the property with startup cash I put into it for a price equal to the mortgage balance on the property. I then refinance the property in my name at a better rate at an LTV where I only get back what I put into it. Using simple numbers, it would look like this

Home value: $100k, Mortgage balance: $50k. I put $50k cash as my equity stake in the LLC partnership. The LLC buys the property for $50k cash, and the seller's $50k equity is his stake in the LLC. I then refinance the property in my name for a 50% LTV, pulling out $50k (Lender told me if I refi within 6 months of purchase I can't get more cash back than I put into the purchase).

Is this a good structure?

Also, does anyone have recommendations how we would split expenses, income, and debt service?  Thank you