203K loan new investor question

[Yents Ybrimovic]

Hey guys, me and a buddy are looking into get started into investing in rentals, as 50/50 partners.

My friend owns a house. I do not. If we were to find a duplex/triplex/fourplex that met our criteria, I was thinking about maybe owner occupying one of the units in exchange for being able to use the 203k loan - for not only cheaper financing but 3.5% down + being able to include fixup costs in the mortgage. Is there a way to structure something like this, where my partner could be in on this too?

We are planning on getting a partnership formed and just 50/50ing the down payment to assign 50%/50% equity on potential houses while dividing up roles. How would we format something like this if I were to use my option of a 203k loan (which he doesnt have this option because he owns a house and wouldnt owner occupy what we buy),  Is it possible to do it as a joint venture? do i sell him 50% equity in the house in exchange for services? what would we do 

[Brie Schmidt]

@Yents Ybrimovic A few things...

* FHA loans require both parties to owner occupy for 1 year

* A 203k loan is not a first time buyer program, you can own a home and still use the program as long as you live there

* The loan must be made to a person, not an entity.  So you could form a partnership but it would not be allowed to purchase the property, so you will not be fully protected legally