FHA, ReFI and eventual LLC with a partner

[Páraic McGarty]

Hi BP Family, 

A friend and I are looking to invest in a 3 family house in the Newark, NJ area. We do not have a enough money to put down a conventional 20% as of yet so therefore are looking to do an FHA Loan.
I have been pre approved for an FHA so want to get going however wanted to see did everyone have any experience with the eventual switch to an LLC to a partnership. Both my friend and I will invest 50% toward the down payment and closing costs (approx $25k each), however it seems like I will have complete ownership as my friend does not qualify for an FHA at the moment.

How will I eventually transfer the property to an LLC to assume 50% partnership with my partner? Will my partner then be liable for tax on the gain as I am essentially gifting him half the property in the eyes of the IRS (as he is not mentioned anywhere on the loan).

Any advice is welcome and appreciated, thank you all!!!!

Paraic