I plan to do the same thing or utilize the 203(k) loan to make some repairs depending on the condition of the duplex I find.

A CPA should be able to split this out for you and then, or you may want to consider putting the property into an LLC which would issue K-1's that could split out the tax benefits.

Borrowers from participating FHA-approved lenders are eligible for 100 percent financing, including closing costs; Making insurance available for both mortgages and home rehabilitation – HUD's Section 203(k) loan program enables those who have lost their homes to finance the purchase or refinance of a house along with its repair through a single mortgage.

The great aspect for me is that there would be no land cost basis and I would get the experience managing the flip (I have never done a flip yet).I believe there is definitely potential in this deal but the issue is that I do not own the lot. 1) Is there a way for me to get financing on such a deal (hard cost around 500 k) say if I had a JV agreement with him but did not own the lot? 

Interested in what Retired Individuals have to say about what their experience has been with the Stock Market and Returns or lack thereof; and what's going on with their CDs and IRAs and 401(K)s that makes them unhappy!?!  

It will pull 700 a month rent or more if used as an vacation rental and retail value is 70+K.

@Sara K.

@Stephan K., thank you for response!  

Thanks @JP K.!

@Steve K.