Arkansas Code § 17-42-104(a)(1), concerning exemptions, is 20 amended to read as follows: 21(a) This chapter does not apply to: 22(1) A person not licensed under this chapter who performs any of 23 the acts described in § 17-42-103(10) with regard to the property owned, 24 leased, or purchased by him or her; as: 25(A) An owner of an individual freehold or leasehold 26 interest in real estate; 27(B) In the case of a corporation, limited liability 28 company, limited partnership or other entity recognized by law holding a 29 freehold or leasehold interest in the real estate under subdivision (a)(1)(A) 30 of this section, a member, manager, partner or officer, who has authority to 31 and does make management decisions affecting the overall policy of the entity 32 regarding real estate activities involving only the interest of the owner; 33(C) An individual attempting to acquire for his or her 34 personal use a freehold or leasehold interest in real estate; or 35(D) In the case of a corporation, limited liability 36HB11632 01-12-2017 09:53:17 SRC062company, limited partnership or other entity recognized by law, intending to 1 acquire a freehold or leasehold interest in real estate under subdivision 2 (a)(1)(C) of this section, a member, manager, partner or officer, who has 3 authority to and does make management decisions affecting the overall policy 4 of the entity; 56SECTION 2.

You get a 1st lien position on the property, demand note, a JV agreement outlining duties and responsibilities of you and your partner (more his responsibilities to make sure you get paid back), and have him add you as additionally insured on the insurance policy.

Agents come up with practices consistent with being fair to both sides of transactions, as well as real estate brokers promulgating policies consistent with that. 

I'm sure what FHA will ask you to have in reserve but for your first investment property you want to make you have a safety net.

IMO Your safety first over profit you're living there so don't wait and give him his formal walking papers.

Honestly id refuse to show houses in some areas based on my safety alone forget about what the commission would be.

This seems silly, but I have heard horror stories of investors who made this mistake and the property was foreclosed on because the old owner kept the cash instead of making payments.3) Make sure to get a very thorough title check and a title insurance policy.

I do however, have a very flexible late policy because they don't always get hours during holidays, etc. 

If this was in my state the first thing I would is order a title insurance policy to check out if it is legitimately yours. 

Cut your teeth on this first place for a while so you can really get a feel for it and some experience while having a good margin of safety if you have to sell.