Need advice on first deal

[Ryan D.]

A potential partner identified an off market opportunity that he wants to partner on. It is a duplex in a small town in southwest WI and is currently owned free and clear. The owner lives in it and wants out so he can move his mom into an assisted living home. I think it is worth between $105,000 to $120,000. He bought it in 2007 for $110,000. He wants to be out the door at closing with $75,000 in his pocket. He is planning to list it, but is willing to deal with us since my partner is a friend. We think you could rent the upper (2 bed, 2 ba, ~1100 sf) for $650-$700 and the lower (3 bed, 2 ba, ~2200sf) for around $750-$800/mo. Our estimates are that it needs about $10k in rehab. How should we structure this deal and how can we do it for as little down as possible? What are the requirements for conventional lenders?