This property is a bad Buy and Hold AND a bad Flip.Bad Buy and Hold:Your taxes and HOA fee combined are HIGHER than the rent.  

To get to our 40k estimate I am thinking using a combination of a peer to peer lending website and the home depot project loan.

These are assumptions, but the holding costs (taxes, insurance, utilities, financing if applicable) over the next few months combined with the selling cost (commissions, transfer tax, seller assist if you're selling to FHA buyer in a lot of cases) you're looking at about 85% of your ARV left. $90k x .85 = $76,500 - less repairs $25k= $51,000 - less acquisition $40k= $11k net profit.Consider the remaining profit you'll receive once this profit is split between partners and after taxes.I'm working on a similar deal right now and thinking that I will rent it out since the profit margin is only around $10k. 

One of you will be granting their interest in the property to the other unless you agree to exclude the property and retain the joint relationship which is pretty rare.

I negotiate contracts for a living, if we are doing something "different', I write a contract and send it to attorney for review,,we work together to get something that accomplishes what I want, and still is legal and offers the protection he wants.If I am making very minor changes to that agreement I go ahead and make them (minor terms etc), but if any change is very complex, I run it back by the attorney.I have read and reviewed thousands of contracts in my life, and I very rarely miss anything, but I am not an attorney, and am constantly surprised by some small change an attorney will make that gives us better protection.If you didn't go to law school, don't play lawyer

Combined value is $72,000 - no major updates or repairs needed / planned.

Though, if you are looking at used homes it's very rare to obtain funding from a bank unless you have a strong relationship.

Rare, but lets say they have a $100k free and clear house, they sell it to you for $5k, then file BK a month later, you better believe the judge (trustee) will go back and take that house to sell it to pay creditors.  

In our case, that's at least $400/month.Part 3 - If you use a combination of Steps 2 and 3, it must satisfy both steps 2 and 3.In summary.  

Eight is the most applications I've ever received for an opening; low response rate is probably a combination of low income, our long application (we're working on that),  and rural area.It seems like it is also unfairly penalizing the people who jump on getting their application in right away.Fun to think about though, thanks for sharing!