One, as a contract to buy the property, which will be converted into a note and mortgage, and a second doc that would be a lease with the seller. 

When rehab is completed and the property more likely to obtain favorable bank financing, the IRA could convert some of the initial loan to equity and then the IRA and partner could seek a bank loan, but it would have to be non-recourse with respect to the IRA.Some banks will do a loan with a personal guarantee from only one of two partners, but that is not common.I suggest you and your partner engage an attorney to craft a way to work together. 

I guess i'm really trying to understand if i'm really saving on taxes converting my sole proprietorship to an S-corp?

The shower is in the basement under the stairs (yeah, this tiny structure has a basement) and there's really no kitchen.I had a contractor eyeball it and he said he guessed it would be about $15k to redo the place (move the shower/sink into the bedroom, convert the upstairs entry area into a tiny kitchen, consolidate the furnace/water heater with smaller units and move them to a corner, and then have the basement be the living area. 

We have also ruled out and FHA loan.Seller currently has it on the market (according to Realtor.com, it has been listed for 44 days), needs major TLC but has fantastic bones and know we can reno while we live there (and put MIL in the converted garage).

I currently own a duplex, I’d like to convert it into a four unit.

How do I convert my current into my first rental?

Are you getting a lot of traffic, but struggling to convert it into leases?

I did one of these in Seattle and we actually converted the bottom into an Airbnb as well.

The couple months of shutdown to STRs in that area scared a lot of owners, and they either sold or converted to LTR.