As neither the funder nor myself have done this before, we are trying to decide how to split profits.

We are hopeful he will be able to pay us back but if not would we be able to foreclose on the house and rent it back to him?

And we are currently house hacking and renovating. 

I used to had one case, we are pretty sure about the property and we are ok to waive ALL contingencies since seller already have all the inspection report and it's a cash offer so not even need any loan work.

We were thinking about fixing our bad credit 1st then once we are at a respectable credit range we wanted to see what we can qualify for?

Just acquired our first property and we are looking for a CPA in the Chicago area. 

It is the economy that we are in right now. 3.9% unemployment rate. $2.50 to $3.50 gas (depending on where you are), interest rates at historic lows.I have to say, if you are looking at MLS, you are NOT going to find DEALS.

I think we are heading in that direction so it could be a good time to buy in the near future. 

The house we are currently living in was purchased with that strategy in mind.

If we are, you'll need yet another pile of cash to remediate that sooner or later.Based on your numbers and this report, the owner is desperate to get rid of an obsolete property.