Each has a kid from prior marriage, and the wife is currently pregnant.

This is before I began my restart...My marriage broke up in 2009 and during the settlement I pretty much gave her (almost) everything she wanted.Then, I wound up being out work for over a year.The divorce cost me half my life savings.

Tough on a marriage my friend!!!

@Michael Morgan Sorry to hear about your marriage. 

@Ulrich FairclothYour "partner" is in a disintegrating marriage (another partnership); already has bad credit (which is not likely to get better in the near term if he is headed for divorce); your talking about "bidding" on a duplex as your first investment, with your partner occupying half (making your investment returns poor, unless he plans to pay market rent).Personally, I'd steer clear of a partnership with this individual until he has his life in order.  

After several years of making my case, marriage, both with careers, and two kids later, she finally agreed to give it a go.

The current house is in his name only.Thanks for helping me figure out if I should make a move to do FHA before marriage, or if it's still a viable option after.

Its a beautiful marriage!

I gave up children and put off marriage.

Unfortunately Fear, marriage, kids, other responsibility derailed me.  3 yrs ago I just woke up and said enough was enough,  I do RE investment full time know, and have never looked back.