At first I stressed about the impending review but once I accepted that there are some people you will never please, my perspective changed to view it as an opportunity to learn how to craft an objective response that demonstrates that the guest was the issue without getting into personal attacks or petty statements.  

I am currently in no financial position to buy a second property comfortably right now, but I have spent over a month crafting a Business Plan as I lay down the foundation for buying my first investment property. 

When rehab is completed and the property more likely to obtain favorable bank financing, the IRA could convert some of the initial loan to equity and then the IRA and partner could seek a bank loan, but it would have to be non-recourse with respect to the IRA.Some banks will do a loan with a personal guarantee from only one of two partners, but that is not common.I suggest you and your partner engage an attorney to craft a way to work together. 

*Adding high efficiency water heater & furnace so we didn't have a chase in the kitchen *Custom bar and hand crafted bar top in the basement - we could have gone with something pre-made or not have done a bar down there at all - just a cool feature we added cause it added value/storage to the space  *Upgraded plank flooring in the basement - it had a water proof sealant and was about $2+ more per sq foot than the cheaper stuff *Demoed walls that would have closed off the kitchen - requiring electrical movement *Added a sprinkler system/new sod - we had a sewer pipe we replaced in the yard, so instead of just patching up what we had to, we made the backyard brand new Again, we did make a profit so in no way was this a sour deal for us, just added a lot of really unique personal touches as well as going the extra mile in certain areas.  

I will continue learning about my new craft realizing like you mentioned this is not a quick buck.

The worst part is I've been preyed on by poor investors who don't know how to craft a fair deal, so I've gained a large amount of respect and understanding for the distressed seller. ( I dare you to post a "while I'm still down" story) People want to know why no one speaks up when they are in the gutter...its because no one really wants to hear about it until they know you are safe on the otherside. 

Read up on the pros and cons of owner financing and craft an ad based on what you read.

I can partner with a local REI friend or my father to co-sign as a loop hole to get a mortgage (I’m fully capable of paying for it)... knowing I’ll need to eventually refinance to get them off the loan.Or, I can wait it out, continue to study, perfect my craft, and prepare for the time when I’m able to get a mortgage on my own.

Need some suggestions on how to craft this deal.

This also ensures you get your money back in full but could also benefit from the profit.Of course you could do a combination of the two (anything in between) where you still charge interest on your loan AND you share in the profits.The way you craft the financials is totally up to you guys and what you feel comfortable doing.Hopefully that helps.