purchase structure and follow up sale info sought

[Andy V.]

I have three deals going concurrently so my funds are otherwise deployed. However, I found a 12 unit with a cap rate of over 17! Id like to get it under contract (with a partner), redo some of the units, fill the three vacancies and buy it for myself (from a partnership I am considering with another investor) in a year or two. I'd pay my partner 10%/yr for his initial investment, which is through his self directed IRA. What's the best way to set up our relationship? Should it be an LLC, where I buy out his share of the LLC in a year or so, but there's no real "sale" of the asset? Or, do we agree ahead of time to a sales price and actual have him sell me his half at closing? Is there any reason his IRA would not be listed as a member of the LLC. Do we not do an LLC for the two of us together, but list his IRA and my LLC as deed holders? Also, assuming the property will get appraised based on the rental income, could I get 100% financing assuming the value is 20% - 25% more than the sales figure we agree to when I buy him out or will I have to come up with 20% - 25% down either way? Any help would be appreciated. I've done 6 deals in the past two years but they were all SFR.

Andy