It's good to know what the gotchas are before I get started, and also good to know that they managed to help you work out the problem (even if it took a week to do so).

NO time to loose ,, I figured I would Wholesale the deal and if it didn’t work out I’d keep it as a rental .

He recently bought a house he's going to flip and a commercial property to do work out of once he "retires" from the family business.

@James ScottI'm not an attorney, just a tax CPA, so I would recommend you talk to one before forming an entity.Based on my limited understanding of the legal side of things...and again this varies by state....I don't see how you can call your partner an LP with a straight face if he's out there rehabbing the real estate and making day-to-day decisions for the business in his capacity as a partner. 

Numbers work out at ~$600/month in cash flow after all expenses.

I’d give them a time frame to get it rented by and if it doesn’t work out you’ll be looking for another agent to get it rented?

The asking price was 160kI offered 150As stated previously, I only gave 12k- so I’d be doing 3.5% down Taxes were roughly $2,800It’s a 4 bed 1 bath rowhomeWas previously rented for $1,375Detached garage in rear rents for $125I calculated that it would cost about $12,000 for rehabs- I’d be doing all the work myselfMy realtor seems to keep telling me that deals won’t workout because I don’t have a lot of money upfront.

Not sure how it will work out if she appeals but I am willing to take a chance.  

She was at 100% capacity.

You in your individual capacity would be one partner and your friend's LLC would be the other partner.The tax reporting depends heavily on how you structure this venture, and that heavily depends on both you and your friends facts, circumstances and goals.