One access I found to a private lender required $15k in the bank before loaning out money, which I don’t have.

If your partner intends to act as a lender - he will have a guarantee of his investment (secured by the property) but have no tax benefits whatsoever.If he is primarily after the tax benefits, he will have to be a part-owner of the property.

Some states require you to have a separate bank account for tenants security deposit, if not, one is fine.

Clearly you will need to raise the $500k privately given your current credit situation.

I than wait for the next two months, while I was out of state, for my roommate to check out so we could process the security deposit.

@Leon Li I think if you’re only getting those quality tenants applying then if you find one that is worth accepting, take 2 months security deposit.

@Ankit Patel yes, it does only apply to liens that the city holds, private owners of tax lien certificates get what they paid for.

Securities regulation compliance, transparency, investor vetting, professional competition from well financed competitors to name a few.  

From what you said you took measures to make sure railings were secure and tread strips were installed. 

If I find private money for the purchase, I would need a partner for the rehab or downpayment... how would you structure a deal like this?