Depending on how well you know him I would also recommend thinking about having him invest some money in it too so he has "skin in the game." 

For those that comment whether positive or negative, you don't have skin in the game.

They can also leave comments and upload pics, all of which I can see from either my desktop or my own smartphone.This just scratches the surface of it's capability.

Essentially your “skin in the game” so it cannot be a loan from a bank, friend, family member, etc.

On the surface it may seem like the same in terms of rental income but when you factor in vacancy and repair costs (due to lower quality tenant), and then add the higher tax rate, there is probably a noticeable difference to the bottom line.  

(we will both put even amount of down payment -skin in the game)  Can we both apply for the loan or is it better to have one person finance? 

If you look closely at hospital rooms you will see wide doors, metal door frames, chair rail all around the room, hard surface floors, and rubber cove base for baseboard, .

The roof is new and looks good on the surface, but all this added weight can't be good, especially in winter with the weight of snow/ice.

(yet) But if I were in your position, I would be sceptical of renting to anyone that doesn’t have a bit of skin in the game.

If you did this and either held it for a year (I️ believe that is the standard, but I️ would confirm with the banking institutions you want to go with), you could then refinance, pay off your land contract and pull cash out if appraisal came back higher.Your original thought process is correct in that a bank wants the 20% (I’ve seen closer to 25-30% on commercial loans until you build relationship) to protect themselves from fluctuations in value, but they also want skin in the game.Good luck,Roger