Lets say I can work out a deal with him and he can maintain his current bank mortgage,  What legal papers between me and him would let me be able to deduct the mortgage interest and taxes, when those mortgage docs would still go to my buddy with his name on em?

save up for the downpayment, meet, learn from and court lenders, analyze the continual stream of properties coming on and off the market, start building your support network which you'll rely on when hosting, and you'll know when the time is right.

No, we wanted to be sure the bank will work with us on the loan first (less than $100,000).

Under 4 units I love Paul Margetts people’s national bank.

If you are in the 30% tax bracket and put in $10,000 of your own funds and you company matches that, you have effectively earned roughly $13,000 right off the top, as opposed to you being able to put $7,000 after-tax direct into your own bank account outside of the IRA.Even if the investment options of the employer plan are not great, as a savings vehicle and means to squirrel away some good tax-sheltered savings, it can be a powerful tool.If the company is contributing to an IRA (SEP or SIMPLE), you can ask to house your account in a self-directed IRA that you could then invest into things like real estate, notes, and the like. 

However, when I talked to my lender, I found out that trying to put the entire thing in an LLC would throw a huge wrench in my plans and the banks wouldn't offer me the same type of loan or down payment.

The most traditional avenue that most banks/credit unions will enable are the typical refinance (cash out refinance) to access equity. 

The bank has to have it underwrite well.

If so, how much over the the amount the bank was owed?

Or at that point do I try a bank to repay hml and then refinance from the bank?