Ideally we would get an attorney to draft up the specifics of our arrangement but things that we are unclear about include things like, who should take out the mortgage (both names v.s. the one who can get the better offer), what documentation is essential i.e. equality/partnership agreement.

Recently I saw a property that looked interesting from the pictures on the online listing, so I went to see the property without any kind of expectation considering that the house was not in my ideal area nor I think I am quite ready to make an offer.  

@Matt Nusbaum when you say concerned with anything above 7 or 8%, do you mean 9-10% cap rates are not ideal properties or not in great areas.  

Deal Structure: The property would ideally be held by a single purpose LLC formed in the state where the property is located and we would have a strong operating agreement in place to try and avoid as many problems as possible.

Ideally, the Turnkey Provider will own the property, renovate in in-house, place a tenant, and then sell it to you.

I am looking at purchasing a single family with 3.5-5% money down. a single family with 4 beds and 2+ baths with a garage under 180k is ideal. furthermore, i am having a hard time qualifying for a mortgage because of my income (less than 20k a year). 

The reason you'd want to use cash is because you will have much more leeway when it comes to negotiating the price of the property.You would also ideally want to talk to a bank or any other mortgage lender to make sure you qualify to refinance out once you're done with the flip.

Was just asking for experience when I deal with a HML.

It's in an area with strong real estate values, strong tenant, ideally located near mass transit.

If you go deeper into Gary, that's where you need to stay away from.Your ideal tenant would be an older couple who don't have kids that go to school so school district isn't an issue for them.