Congratulations, you get to share your partners tax burden and pay the depreciation recapture at ordinary income rates. 

The key is for you to separate the utility costs from the rent, then advertise your units with the rent rate only and explain the utilities later.HOW TO SHARE UTILITIES 101You have a property with two or more units and the utility meters are shared.

Cash-Out Refinance – Refinancing one of your properties to pull out $30,000 in cash can be an option, though it may extend your loan term or increase your interest rate. 3.

Finally from a purely from a cash outlay prospective short term, you could rent a house with roommates and your payment would still probably be Lower than house hacking because rates are so high, over the long period 5-10 years obviously it would cheaper ti buy, hope that makes sense 

My firm has several lenders who can seamlessly close in 15 days on 'traditional' mortgages at/below market rates and we've been doing so for a couple of years now. 

Yes, that means he will have to give up his 3.5% rate (or whatever it is assuming lower then today rates) but it is what it is. 

If it is someone you know you can give them a straight return as if its a loan - can provide a lower interest rate to provide upside - it really depends on the lender and what are they concerned with and what is their risk profile. 

I am unsure how to accurately predict rates and occupancy.

However, some investors don't mind this strategy if they prefer not to put a lot of liquid in up front and plan to refi out within a few years of closing (which seems to be a great option with the talks of the FED reducing interest rates this year).It really comes down to investing in a growing market, in a good neighborhood & building a great team to support you.

Houston's diverse, and the real estate market is buzzing.Check your budget, how much risk you can handle, and what you want from the investment.Montrose, The Heights, Eado, and Museum District are buzzin' with mid-term rental potential.Research the neighborhoods, check the rates, and do the math on costs before diving in.