@Kevin Romines I'm not looking for fannie/freddie rates but I am not looking for 7%+ on a buy and hold property either. I'm happy to be in the middle. I have excellent credit, a good W-2 paying job, and have owned rental properties since 2004.
This partnership is new and one of my other partners is in a similar situation with good credit, good income and rental properties. The other partner does not have good credit but has money to fund the deals and gets a % of the income and refinance amounts. It's a good deal for all of us, however the only missing piece is getting out of the hard money loan into something that makes sense.
Theoretically we could put the equity partner at a lower than 25% ownership, but even talking with lenders they would still want to see his tax returns and information, so I don't really see how this is advantageous unless you know a lender that would work with us.
While I appreciate you sending me the full details on how fannie/freddie work, that is a lot to read through and is not 100% relevent for this situation. I understand that they do not like LLCs and that you need to purchase a house in your personal name. I also understand I "could" buy a house in my name and do a quit claim deed afterwards. This limits my home buying power however and as mentioned previously on this post I will need to reach out to others such as my wife purchase a home....
I've already moved her around enough times and with a newborn on the way the option of doing more owner occupied homes are not likely. Plus I don't buy turnkey homes.
@Bobby Montagne Understood. My credit score is fine and the house will rent out for $3,500+ a month once the renovation is completed. I just purchased another rental property (in my name) and provided this information. I'm familiar with that process.