I'd recommend the same: find something in that 175-260 range, claim your room, fully vet and screen your tenants/roommates and put the arrangement in writing.

I would suggest that you document this arrangement in writing so that there is no misunderstanding later. 

I would also arrange a surprise visit during a flip until you are 100% sure you can trust your contractor.

In some instances I've filed myself ($29.00) and then just arranged for the attorney to represent me in court.

They were very happy with this arrangement. 

I advise people starting out to pick a market where you can get there easily - you need to visit yourself to get familiar with the areas, the kinds of deals available, and arrange trips where you can attend REIA meetings where you can meet people on the ground.

If you want to buy outright or on terms, that can be arranged. 

The tenant got behind on the water bill and finally made arrangements/agreement with Water company to pay a specific amount monthly to bring the account up to date.  

Have them arrange showings on that (likely) weekend at your target properties and throw in another 5-7 that look like potentials.

Why don't you just use your own funds for the down payment, and work out an arrangement with your friend to cover the rehab expenses.