Considering buying a duplex with friend

[Drew Vukov]

I am considering buying  a duplex with a friend of mine and using it as a rental property.

Now heres where I need some advice. Is it possible that I can partner with him while he buys the house using an FHA loan with 3.5% down?

He would occupy the one side of the duplex. Our tentative agreement is he would pay fair market value for his side of the rental (he will also rent out a room on his side to another friend). And than basically we just split the  cash flow of the property. We will both make improvements to the property, and than after at least a year look into  either a sale, refinance, or continue to hold for cashflow.

Is this legal?

Should I or can I cosign with him on the loan as a non occupant?

What other legal steps should I take to ensure I have a legal right to 50% of the property and proceeds.