Especially when you’re dealing direct with a seller, emotions should be taken into consideration, and can actually help you land a deal significantly cheaper than what another investor is proposing who is coldhearted.

In a chapter 13, the debtor is required to submit a chapter 13 plan that proposes a repayment plan over a term of 3 to 5 years and allows the debtor to restructure debts or other obligations. 

@Brandon Malone the only reason to consider a tenant proposed upgrade is if you were planning to do it at some point anyway (and I am saying consider, not necessarily approve)This isn't something I would do unless of course it is a high end property and there is essentially a chefs kitchen where the expectation would be a gas range.

First, let’s say this proposal “works” as intended.

If you've lived there a year or more, it would satisfy the occupancy clause on most standard loans and you're good to do what you're proposing minus all the LLC shenanigans. 

@Michael LipariIf I allowed taxes to drive my business decisions, I would have seconded the idea proposed by @Alex Olson and @Corby Goade.

But beyond this proposed percentage splits, you and your friend need to look at actual numbers.  

I think a more ambitious strategy would be to "flood the zone with value" - specifically, pick a few listings in the geography you are interested in that are being mismanaged and propose your plan to that owner just as an ice breaker.

Today We’re Talkin:- The Weekly 3 - News and Data to Keep you Informed- Rate Cut Downgrade- The REAL Shrinkflation- In Case you Missed it: The President’s New Housing Proposals are Problematic- The Bottom LineThe Weekly 3: News and Data to Keep You Informed- Inflation is remaining Stubborn.

Seth's Assistant = Chance TruscottAfter I paid, they sent me over my proposed structure, which included Holding LLC, Living Trust, C-corp, LLC in each state (1:1).