It may also be possible to obtain a bid to purchase the loan in the future where the seller has an option down the road to acquire cash if required, they may sell part or all of the note and this is another important factor with older/elderly note holders, a servicier may accomplish this, a big benefit to both of you actually, you don't want just any Joe Blow end up with your note, IMO.You have a banker that appears to be willing to take the collateral and make a loan, unless he dies and bank policies change (unlikely) the bank will probably be available to you to refinance the obligation if that becomes necessary, but if you structure this in a beneficial way for the seller, you may not have this issue, but it's prudent to have the option.

Because part or all of my work has been borrowed and used by many from the "one house" Landlord to the Landlord "with hundreds of units". 

. - find a partner who can bring some or all of the downpayment money. seems like a good option, but haven't found that person yet. - my agent says I should just make an offer to get the conversation started.

Most or all of the building operating costs will be recouped from the tenants through the CAM fees built into their leases.Does that make sense?

If you act like a partnership, the ownership structure can be restructured/recharacterized as a partnership, which would complicate your exit strategy when you decide to sell and some or all of  you  wish  to 1031 Exchange separately. 

I could go on for hours as to why, but mostly around out of state troubles arising from lack of local knowledge and control, and reliance on hiring folks who turn out to be either incompetent, don't have my best interests at heart, are outright crooks, or all of the above.Another thing to consider as a newbie is the source of the advice.

Whether you live in it, do the work yourself, get cash from whatever sources you can, or ALL three like Jeff, make the jump and figure it out.Thanks for posting this story. 

A friend signed up for Section 8 tenants assuming most or all of the rent would be guaranteed by Section 8. 

@Patrick Barry You actually dont have any ridk, he is financing the whole deal.. no risk nor liability. remember that the word contractor means that you have a contractors license, and if you have employees, then you need insurances. the more accurate description for you is project manager, that means you will just be responsible in hiring subs, estimating and even buying materials to say the least. if thats the route, a regular agreement with only 2 llcs will work fine. just make sure if he doesnt hold up his end of the deal, you hit him with potential profit plus your time and expenses paid. i would suggest "50% of net profit if the property sells - and all expenses needs receipt of proof of payment", OR "$xxxx/week (including, gas time, truck rental or all inclusive) from start of the agreement for 6 months or until end of rehab and this weekly charge is due in 1 year if property doesnt sell."

But you don't get it through those agencies, like state farm or all state.