By now you have read all of the Syndication failure issues.  

I have scores of posts on BP regarding this issue and HUD. 

@Jamie Banks The issue is as far as I know almost all Leases when ALE types of companies are involved the  insurance policy holders are listed as the tenant.

A contract developed 10 years ago might be outdated in ways that will cause you an issue.

However, it’s important to understand the loan’s key requirements:Owner-Occupancy: The borrower must live in one of the units as their primary residence for at least 12 months.Single Borrower: FHA loans are issued to individuals, not partnerships or entities, which means the loan would need to be in your name alone.Given your scenario, only you can qualify for the 203(k) loan since your partner does not intend to occupy the property.2.

However, I think your bigger issue is going to be putting 5% down on a small multi-family.

Use a promissory note drafted by an attorney to outline loan terms, including an interest rate that aligns with IRS Applicable Federal Rates to avoid gift tax issues.

For older properties, expect a higher CapEx due to potential issues with major systems like roofing or plumbing.

I have software that will allow me to send out and reset doorcodes so i dont forsee that as an issue

They said the tenants pay on time every month, and they have never had any issues.