One common approach is to form a legal entity, such as an LLC, where both of you are equal partners.

Additionally, as stated above again, the projects that I was taking on were purchase well below market value.

Over the past decade, I’ve built and managed purpose-driven homes in CA that serve communities while generating stable, long-term cash flow.In addition to running care homes, I also consult with aspiring care home owners across multiple states, including Texas, Arizona, and Michigan (Detroit area).

I'm currently renovating my rear unit and it has the perfect layout to split into 2 units by adding a wall and an additional front door.

Thanks for any additional input you have time to put forth. 

We look at lenders (so long as they lend in the asset class you are considering) as an additional line of due diligence (they deeply care about their money and they are likely more sophisticated than you are).

What do you mean you are paying $400 additional dollars more than what you are paying now?

Quote from @Conte Cuttino: Makes sense @Andrew Freed so say if we I can make it additional legal space, do you think the 107K left in the property for the return is worth it or should I sale and move on? 

JC’s lenient approach is definitely a draw for investors looking to avoid the red tape that’s becoming more common in larger cities.

If you’re comfortable with a bigger investment, a duplex is good for the benefit of additional cash flow and you could house-hack.