How to Split a Foreclosure Deal

[Bryce Young]

Context: I'm new to foreclosure investing and inexperienced with repairs, but I'm about to bid on a duplex. I heard about it from a friend of mine. He has done flips before and is experienced with repairs. He is willing to team up with me, or act just as my realtor. 

I am a beginner investor and a college student. If possible, I plan on living in it and renting out the other side. It needs some repairs so I will live in it while it gets repaired. I hope to put 5% down (FHA would be difficult for this property). I might be able to muster 10%.

My question: What is the best way to split a deal if I plan on living in the property and renting it out? I don't think I can afford the repairs all by myself, but I don't want to let this deal pass by. I also want the deal to be worth it for my partner. How should I suggest we split the deal?

[Wayne Brooks]

If you qualify for a loan on your own, go with an FHA 203k loan, which is designed for purchase and rehab. If the property is in bad condition, you won't get conventional, or any other kind of financing.