As far as partnering with him, a partnership on a rental property may be an option if I can bring credit or financing to the table, but I am getting paid to do the layout design, drawings, and material selections for his new construction investments and client remodels, so no opportunity on that end.

It is difficult to be a successful landlord if you can't read people, because credit reports and income verification doesn't tell you anything about how much of a PITA the tenant is going to be or how reasonable they will behave as a human being.

@Kyle Cortez - If parents are comfortable with it, they could just lend their credit to the business, but let student own it.

Assuming you have a decent job and reasonable credit score, you should definitely be able to secure better terms through regular conventional financing.

But if you are looking to refi instead of sell as an exit strategy you will want to know who will be lending you the cash to take out the hard money lender.When dealing with 1-4 units you will be most likely getting a personal (conventional) mortgage so good credit is a must for the most part. 

Those listings just stick out because they're priced terribly and are hoping to trick someone into buying.

Their timeline (NACA) is prob 6-12 months which is too slow for many people but sounds like a potentially good fit for you.If you are paying rent on top of your student loan debt, employed, and have ok credit, you should be able to qualify for an owner occupied duplex with NACA.

The bank will consider all income, all expenses and your credit report.

Just curious, if you have a good job/decent credit score, why even look @ FHA?

If you are building a new home on a lot that previously had a home they would credit back the impact fees reducing the cost.