That said, I have determined that the best route of action would be to target distressed homes that are not listed for sale.

If I wanted to sell my houses in Two to three days I would do it by posting Atleast a dozen white or yellow corrugated bandit signs at every street intersection .

The general consensus is that the 30yr option is the better route to go if you are trying to grow your business as it gives you more cashflow to continue to purchase your second, third, fourth etc property. 

You win because you will get a piece of real estate all fixed up after you friend works on it.Your friend wins because he is compensated for the work he did.If you do decide to go the partnership route, spend an hour or two with an attorney and have everything in writing.What is each partner's ownership percentage?

Obviously if you paid the money towards the 5.5% loan it would ultimately save you a little bit more money in interest, and I would suggest going this route if you weren't able to completely close out the other loan. 

My wife and I own and manage several Airbnb properties around the city, so I would be happy to talk with you more about this if you are thinking to go that route.

What are the most important things to think about and research when analyzing/looking at foreclosures with the intention of going the brrrr method route?

I know I don’t have to go this route but I don’t know any private investors to lend the money.

I’m assuming it is less expensive than individual coverage or you wouldn’t have gone that route.  

Other than the eviction verses foreclosure, what are the other pros and cons of each route?