@Amanda Swetman If your friend doesn't want to do any work and wants their money back quickly, you can offer them to provide you with a short term fixed loan backed up by a property = aka collateral.

I am a nice guy, and sometimes a bad tenant just smells that out and doesn't make a move.

It doesn’t need a ton of work.

If zoning doesn't permit business leases, you can always have a real estate lawyer draft up a suitable NNN Residential Lease with Sublet Options... you just have to make sure it's worded plainly and with enough residential language to keep the city happy should they come knockin. :-)

It's doesn't really matter how it's broken down in actual structures.

If you meant 3 years, then I would get a loan that doesn't have a prepayment penalty after the third year.Interest-only loans can help you cash flow while performing renovations during the first few years.

Once you take a loan out for a house, it doesn't matter if you change jobs after.You'll only have an issue if you're switching fields and employers around the same time you're trying to buy property.

You get more cash flow but it doesn't equate to higher returns.

It really doesn't matter which one of you signs the agreement because you will both be liable for the actions of the other.

@Jonathan Roberts  Doesn't matter as long as they're trade or business related.