With one caveat - Your profit would be $43K but you'd also have to add back in depreciation recapture which is a hidden little gotcha that many times ain't small.

I believe they only charge a small fee for rent payments and reports.

Fined motivated seller that would belling to sell you a small MFR with no money down.you will need to find someone that is a tired landlord and they would want to receive income but not be involved in the day to day management of the property / tenants. 

This would be for a small MFR which qualifies for conventional.What is the appropriate way to utilize partnership money in a conventional loan? 

Small community banks or credit unions are going to be more flexible in their terms. 

Well since you have already started and got your foot in the door to real estate investing I might suggest you make your next one a small multifamily like from 2 to 4 units , live in one and rent out all the other units.

Since this would be my first house, I want to start small around the 60k range with at least 20% down. 

Hey BP, If anyone in or around the Birmingham, AL market that has or knows anyone selling a small multifamily (2-4) unit.

If you are selling with a small market up that is OK. 

Using a small bank is your best option.