can't qualify for the loan on a good deal house

[Joel Brown]

I have a friend that called me yesterday. He was looking for advise. He has been watching me purchase and rent properties and he wants to get in the game. He makes decent money (He is a part time college student and works managing a company that sells over the summer) He has told me in the past that he will make $40-60K over the summer. Most is 1099 income and his accountant somehow shows a very small income with all his write offs. At any rate he has tried two banks and 1 lending agency and was turned down by all. His parents think he will loose money in real estate so no cosign with them. 

He found this FSBO in the Provo/Orem/ Lehi area which according to most of the reports is growing leaps and bounds and has tons of the tech and future jobs so the location is great. He plans to live in it and rent to some of his college friends. It has a separate basement entrance as well that he would rent to a couple/small family .

I think it has potential. I'm asking your help on creative options that he could purchase and use the property as and investment to get him started in the real estate investing game.