However, after doing the math on the 3% down payment, I would no longer cash flow.

There is no such thing as a gap funding contract, @Marco Chaidez.I assume you are asking someone to provide the funds you need for the down payment and rehab costs on a flip you are doing?

With the FHA I’ll be putting the money as a 3% down payment and I’ll rent rooms (house hacking) or with the investor I’ll invest the money with a hard money loan going 50/50 with this guy.

This is how most hard money works now Rates: 9% to 13% (Most Deals are 11-12%)Terms: up to 36 Months (Most Deals are 6-12 months)Fees: 2-4 points(%) of loan amount paid at closing (Most Deals are 3 points(%))Minimum Loan Amount: $50,000 (For loans less than $250,000 $2,500 minimum fee)Max Loan: 65%-70% of After Repair Value(ARV) 100% Rehab Financing Available (Require 20% of purchase price down payment or cross-collateral)Closing Timeframe: 48 Hours - 3 Weeks (Most Deals are 2 Weeks)NO PRIMARY RESIDENCES, NON-OWNER OCCUPIED ONLY, BUSINESS AND COMMERCIAL USE ONLY.

My partner is unemployed and I have been making 100% of the payments. 

if you just buy a standard LTR with a conventional mortgage, you'll be break even or negative in most markets, and your down payment will sit there doing nothing.i own a condo in Stamford, and i plan to start doing more in Fairfield County in 2025 when i have more time. 

Also down payment required may be higher based off experience.

Do you have a large down payment now or a small down payment?

Between appreciation and our payments we have 50K-75k in equity.

If they want to move forward, we first advise them that if they are approved, we will need the deposit in certified check or money order only within two business days; and pro-rated rent prior to turning over keys by similar method (Once they move in, we have other payment options available).