The only issue would be how strong your case is to do a 1031 since a family member is living there. 

We have been very fortunate in our RE careers to not have any serious issues with tenants at our properties.

My issue is finding a property that cashflows with both units rented out.

I am wondering if anyone has dealt with similar issue before?

And we like the idea that maintenance shouldn’t be too much of an issue for the first couple of years. 

If you set it up with a car rental service like Turo are likely protecting yourself/car more from potential issues and damage and may be able to keep it off platform and only make it available to your renters (not sure on that last part but just a thought).Also, from a lender perspective it could complicate things if you are looking to refinance one day and have car payments included in the lease payments/on the lease.

Code Chapter 47 - Fraud And False Statements, which is a very boring read, unless it applies to you.Please don’t do that.Make sure your Proof of Funds source has the funds and that you are authorized to use those funds and the source will vouch for you in court.If you are going to buy “Turnkey” it is recommended you visit the actual neighborhood and actual house before closing.Things can be very different in person.Afterwards is too late.You may not like what you seeGo with the Math, not the emotions or hopes of the futureIf you are losing money with the hopes of making it up later, you should seriously reconsider.Wishful thinking is a poor investment.Interest rates are going upAnd interest rates are going down.And interest rates are remaining the same.There is no clear direction for rates and there are arguments for going each direction – buy so that your property cash flows, even if you are wrong.Ignoring your workers.Always serve your workers pizza on the job.It keeps them on-site so they don’t wander offThey will think you actually care and will work harderYou get to become “one of the boys” and they will tell you things you need to knowHmmm, out of space, but not out of mistakes. 

The former borrower tried to do the right thing to resolve past financial issues. 

They are getting what they really want, and you are crafting the deal to where it will still make sense for you.One potential issue is if what is most important to them is most important to you as well.

The issue is that I'm giving up 1/3 equity to a partner and would like to only have me and my father own the final farm.