.% down of the purchase price and the rehab costsCan be used for primary residence with 1-4 units (could also be looked at as a disadvantage)  When using 2-4 unit property, projected income from other units can be used to qualify 6 months' worth of mortgage payments can be rolled into the renovation budget if the house is deemed uninhabitable by the HUD consultantCredit scores can go down to 600s (lender dependent) DTI can go to as high as automated underwriting system allows (typically 56.9%)Allows you to buy a property in any conditionCan use it to fix minor repairs all the way up to basically a full tear-downFHA 203k Disadvantages: Interest rates tend to be about .25-.5 higher than regular FHA loan Additional costs include HUD consultant fee, inspections, title updates, and supplemental origination fee (Cost of doing business, but this is built this into your numbers, so it's no big deal)Must use a licensed General Contractor for a full 203k or up to 3 specialized contractors on the limited 203k Must hold onto the property for 1 year and live in it. 

My wife has an old 401k rollover from a prior job that we're both interested in rolling into a self directed IRA and investing in RE projects. 

Once you have an honest assessment of these expenses you can get an accurate profit and loss projection. 

Good luck, it looks like a serious project!

If you want to grab coffee / talk about the market / see my projects in the works, I'm glad to do that.

Thank you for the wonderful ideas; I will keep you posted as the project comes together. 

I typically use hard money to fund my projects but I thought it would be great to bring him in as a cash partner.My question is how do you set up the partnership splits since he isn’t bringing all the cash, he is just bring enough to really cover the hard money fees and holding cost.  

Even so, they should have a "projected" NNN figure on a per square foot basis.

If your interested in possibly connecting for this or future projects send me a dm with your contact.

Projected income?