(I hope my question makes sense)

This only makes sense if 1) you wanted to go FHA and 2) the condo doesn't make sense as a rental.You could also refinance your condo if you have enough equity, and it makes sense financially to start the clock over. 

@Adam Harward I personally like Cincinnati, it is great for flips but getting difficult to find rentals that make sense

I suspect you have negotiated their bottom price plus closing cost instead of a total price minus closing cost if that makes sense.

So to my question: Would it make sense to go 50/50 or a different split?

Or should I listen to them and look for markets where MF deals make more sense?

you need the answers to these questions before you decide to go forth on this. if the numbers don't make good sense then you don't make dollars. my coin.Kudos,Mary 

I know...they make sense to me too!

My thoughts were to do a contract for deed and a quit claim deed, but I guess it doesn't make too much sense since I can't file both. 

Afterward, I ask them and if it does not make sense to me, I will not do it.