I know some lenders will be okay with that as long as they get proof the repairs were done prior to closing.

He can discount it all he wants before it goes to sale, as long as that agreed upon discounted price pays the note off.

As long as you are always honest, and ethical, it’s more than okay to profit... it’s awesome

12 months … if its a mfh you can rent it out after closing as long as you occupy one of the units

If you do not have this outlined in the lease, they could theoretically stay as long as they like.

@Mark Sewell yes that too works as well as long as he is cashflowing.

I used a contractor that I personally knew for the project, but I think contractors like doing 203k rehabs as payment is more or less guaranteed so long as the work is completed correctly (no dealing with customers who don't pay).

If so, then he can make you a 5% owner/member in the LLC (as long as this property is the only thing owned by the LLC).If not, then form an LLC to hold the property, where he is 95% owner and you are 5% owner.The LLC Operating Agreement will describe how distributions are paid.Note, giving you 5% of the existing asset could be a taxable event for you.

With that said, acquiring a park with park owned homes is not a complete deal killer as long as you have a smart strategy to convert the homes to tenant owned and the experience to renovate and sell them.

As long as you have access to cash/reserves you'll be fine.