Can you partner to use someone else's FHA Loan?

[Marlon Lacayo]

Hello Bigger Pockets!

I'm a new REI investor looking to get into the rental space, something I feel capable of doing while I maintain my demanding day job.

I wanted to know if it's both legal and a good idea to partner with someone to take advantage of the FHA loan?

I live in San Diego, and so far have little faith that I will be able to start rental business here with my relatively low amount of capital. Could I partner with someone that lives in, say, Phoenix, in order to take advantage of their FHA eligibility?

Basically, I would provide capital and they would live in the home for 1 year, with the house possibly under their name (not sure how this would work in this scenario). After the year they can choose to leave or continue renting. I would ultimately supply the capital for down payment and rehab and pay the mortgage if needed, we would rent out the other units (ideally this would be a 4-plex depending on the market) and then we would split the income whichever way we see fit.

Any immediate concerns with this? Any thing I should look out for or be wary of? Should I only split the income from rent but not appreciation?

Thanks in advance, everyone!