Since its my first i was hoping someone can help me with a sample contract that they have which show what the format should look like and what points should be covered.

Garner covers Wake county and Johnston county, and your school district may explain rental demand some too.

The basement is accessible from the bottom unit as it is, I would just need to frame and sheetrock the garage access from the basement so it doesn’t abut a bedroom in order to cover my bases (I believe). 

If your guy is preapproved for a loan, his bank most likely isn't going to fund the deal with income like this for the reason that you mentioned, free cash doesn't even cover debt service.

So I get a fix and flip loan from a hard money lender that covers the purchase price plus usually around 1/2 of the renovation cost.

It will be right in the paperwork you sign and doing it anyway may mean your not covered if the place burns down !

The sellers offered to submit an insurance claim for the stolen ac units and take that $ to cover the difference between our new price & her mortgage payoff.  

I know this isn’t exactly what you’re asking about, but I had a prospect in Philly who said their employer, Home Depot, would cover the security deposit.

Since I don't have a lot to put down, I would like to partner and use hard money to cover purchasing and the reno cost.I wanted to know from those who have experience with flipping homes and partnering some of the pros and cons of utilizing these options.

If you only have a few POHs you want to get rid of that may fit the bill too instead of rent credit, which is fairly management heavy to institute.