The duplex makes better financial sense. 

In other words, if we do a 50/50 split on equity, and things turn south for whatever reason, I am taking on 100% of the financial risk. 

Every financial planner....and I mean every single one....will advise that you absolutely need to have 3-6 months saved for an emergency fund. 

Get your financial life in order, educate yourself instead of wasting money on gurus, and then start building wealth the right way.

@Delmas Edwards,A lot depends on your personal financial situation. 

They seem to be doing fine as they have managed to keep a balance of about $6k in their bank accounts but would I consider them very risky and I don't think they can afford paying $2,200 rent without facing financial hardship.

It's not worth it.I'm told that FHA has ways of finding these things out that are more involved than just getting your mail at the address.Ohio is not listed in this resource: http://www.ncsl.org/research/financial-services-an...But in many of the states listed, mortgage fraud is a felony.

Gather your evidence before you talk to any attorney, but I think its going to be a close call whether its financially even worth it.

Because dont get me wrong I actually love my "JOB" but thats just it i dont want a "job" any more and again i love what i do and have always done but im looking to whole heartedly do my own rehabs and wholesale deals and all ive been doing is gaining knowledge every day i study something read and listen to everything that can help me with my goal of gaining Financial freedom and so its now time to implement , Its now time to get ready to get out there and locate these deals and i know they are out there how ever i here some people say to get your llc first, and i here others say you dont need that till later, so really what do i do ?

Speak to a few conventional banks and see what they will do for you given your new financial and work situation.