QQ, How do you house hack w/ a friend living in the unit?

[Leonardo Guzman]

Hello, 

My name is Leonardo Guzman from NYC, and I am looking to get into real estate. I have a friend who I am trying to encourage to get into real estate but doesn't have the finances now for a 3.5% FHA loan.

He's hoping to move out and rent an apartment, or save up and buy a Coop or Condo. I encourage him to invest in a multi-family home because he can house hack and live for free or reduced rent, and kickstart his investment career.

He says if he decides to buy an MFH, he wants me to partner up with him, mostly finding the deal, putting in on the down payment, and helping him manage the property, while he lives in one of the units.

I'm all for helping my friend, but I don't know how economically feasible this deal will be for me.

I'm trying to think of a creative way to help him.

Maybe I can pay the down payment on the home, and he can use his FHA loan to secure the mortgage. I'll collect the rent from the units, including him, keep the cash flow for a year, and then maybe have him buy me out in a year buy paying my down payment or by paying half the down payment and splitting the cash flow in half.

I haven't analyzed the numbers yet or even seen if an FHA loan is that flexible. I'm in the brainstorming stage.

Do you think this method can work, or do you have another creative solution for this?

Best,

Leonardo