So you could form a partnership but it would not be allowed to purchase the property, so you will not be fully protected legallyThanks for clarifying that they're not a first time buyer program, I am not sure why I had that confused.

Running your own, slightly more conservative pro forma ensures you’re financially prepared even if things don’t go perfectly.

I would pay I/O for 5 yrs, and then ri-fi but you HAVE to hit your pro-forma to execute this plan. 

However, as many will tell you on this website, know your market so you can be more critical when looking at the pro forma.

Its generally retail medical operators, so we include things like the market dynamics for our use and why statistically the market and location of the site will be viable form a business case standpoint, and speak to how the startup has enlisted the help of an EMR or other such consultant to help in their general rampup and ability to bill/get insurance contracts.  

The only way to answer that in general (whether house hacking in today's market is still a good option) or for a particular property, is to learn how to run the numbers and analyze a specific property to see whether it will be able to stand on its own as an investment when you move out someday.There are a lot of resources here on BP for doing that but I'd just say, make sure the assumptions you're putting into your spreadsheet or deal analyzer are realistic.Make sure the rents (especially for vacant units or pro-forma #s) are realistic by doing your own rent comps; make sure the mortgage rate is realistic by doing some research online and/or talking to some mortgage folks; make sure insurance #s are realistic by getting a couple of quotes for the # of units and zip code / area you're looking in; etc.I hope that helps, and good luck 😊

I was advised that he should create an LLC and then our two companies can form a partnership. 

I like it and the numbers look decent.Pro Forma is 7.21% and CoC ROI is 10.04%.However one of the tenants is late for rent ($1,000 in late fees this year), a smoker and their unit is hard to even be in.   

Create a realistic pro forma profit and loss statement to determine if this business has the potential to pay any more than you could make working a “no risk” job. 6.

I'm not into Sub2.In MN when using the SOS "fast-file" online system to form a LLC it states, CLEARLY but often missed by people, Single member LLC's are a disregarded entity and legally held as sole proprietor for all legal purposes.