What sort of structure do you have?

There are many ways to structure a private money deal.

The only professional who can competently and definitively advise as to the appropriate legal structure for asset protection is an attorney who practices this type of law.Here are 2 comprehensive videos from a prominent real estate, estate planning, and tax law attorney which describes most of the issues you are concerned with:1.

Looking for a structure that is fair for both parties.

You'll be surprised the type of creative structuring in deals you can come up with that end up being beneficial for all parties involved.

Is there a way to structure this exchange where he would use the proceeds from the property exchanged for 1/2 of the purchase price and use personal funds for the remaining 1/2?

BP,I have folks that have expressed interest in investing in my projects, but I am having trouble figuring out how to structure the agreement since I like to buy and hold.

There are numerous ways to structure it, the most common is a 1-5 year balloon payment where you'll pay them the balance you owe by refinancing with a bank, but you can get as creative as you want with it!  

The other unknown factors (not listed in your post) are if any structural framing, roof or other big ticket items are in need of replacement as well which could add to your costs per SF.For a real and accurate answer, best to get 2-3 contractor bids.

Year of the house does not define if the sewer line was ever replaced the date that structure was built.