I found an 8 unit apartment community, but am unsure about how to get financing since my credit and income will not qualify me for the purchase.

@Michael Stanley NinoHaving 40k for a downpayment is a great start but remember for a conventional loan banks will look at Credit Score , reserves as well..

Odds are you will never collect a dime, but it only takes 30 minutes to turn them over to collections and you may get something out of it.At a minimum, it will sit on their credit report and may prevent other Landlords from making the same mistake.

Does that mean it could impact his credit?

I wanted to know if this loan would show up on the person (that I’m lending )credit report?

My credit score is good (800). 6% seems high to me. 

@Coty CrayI’ll go lower on credit scores but not on the things you listed.

These are two separate contracts.Third Rule -  Never give rent credits...ever.Forth Rule - The Option Consideration is the act of the person buying the Option. 

The properties and the loans will most likely need to be in your personal name (no LLCs), and you'd need sufficient credit, income, and DTI to qualifiy for both loans simultaneously. 

Conventional loans require as low as 5% down depending on your credit score and other factors.