@Tom Hall It is my understanding that if you talk with your mortgage company first and make the necessary arrangements you can recast your mortgage to get a lower payment by paying down a chunk of the mortgage at once.

@Steven Hamilton III reached out by email to arrange a consultation with you about the information below, but I also post it here in case you want to reply publicly so the response may also help others.

I aim to make win-win arrangements for both buyer and seller.

Structuring the Deal with a PartnerWhile your partner cannot directly participate in the loan, there are ways to structure your arrangement to reflect your 50/50 partnership:Option 1: Post-Purchase Equity SaleYou obtain the 203(k) loan in your name as the owner-occupant.After closing, you sell your partner 50% equity in the property via a quitclaim deed or similar legal instrument.Your partnership agreement would outline each person’s roles, responsibilities, and share of profits.Note: Be mindful of FHA’s rules around title changes and ensure this doesn’t violate loan terms.Option 2: Partnership Contribution AgreementYou both contribute to the down payment and renovation costs as outlined in a partnership agreement.Your partner’s contribution could be recognized as a share of the equity in exchange for funding, services, or property management.The partnership agreement would detail how profits, responsibilities, and equity are split.Option 3: Joint Venture AgreementStructure the deal as a joint venture, where you own the property personally (required for the FHA loan), but profits and roles are split per a formal agreement.Your partner could receive equity-like compensation through profit-sharing without being on the title.3.

Investors aren’t acquiring fractional property ownership but are instead buying income rights, meaning the arrangement avoids triggering real estate co-ownership laws or property title issues. 

., must share certain attributes (bedrooms, bathroom, etc.).T3: Compare property typeIn "The Book on Flipping Houses" by J Scott, it mentioned about adjusting the value of the comps to ensures that they resemble the subject property as closely as possible.

There's a lot you can do remotely such as listing on websites, pricing strategies, arranging/order supplies, guest communications, going to the property and doing work on it (note: travel time generally doesn't count).

Are there any verbal agreements or arrangements between the current Landlord and Tenant?

Didn't think our Realtor did anything special other than arrange showings for house we were interested in.What type insight are you looking for?

Consult an attorney and tax advisor to structure the arrangement legally and effectively.This post does not create a CPA-Client relationship.