First Duplex Purchase With A Partner

[Nicholas A.]

Hello!

It is an exciting time for me. I've been taking massive action...started a podcast with my partner in Houston (Millennial Cash Flow Podcast), and no I am working diligently with a local Dallas broker to get into my first piece of real estate.

I found a fantastic value add opportunity in a duplex located 1.5 blocks outside of the Bishop Arts District. The only caveat is that I need help with the mortgage due to lack of sufficient income, and help with some rehab costs. As a result, I will partner with a longtime friend of mine. Some history on our friendship: I stated working with him when I was 12, now 28. The work consisted of house rehabs and lots of landscaping, so we have a long history of this type of work together, and it has always been great.

I've got J Scott's "The Book on Estimating Rehab Costs" and have begun reading.

The main concern here is that all of this is done as professionally and safely as possible, protecting both of us. How should our roles / responsibilities be recorded? How should we determine what happens with the property if either of us dies?

Bigger Caveat: I plan on owner occupying in order to get this with an FHA loan. I would love the conventional loan, but 20% down on a $375,000 - $400,000 is huge for me right now. Is it possible to get a hard money loan on this down payment if I went the conventional route?

Thank you, and let me know if you have anymore concerns or questions,

Nick Aja