How can I make this work?

Question

Alright Bigger Pockets community, I need all the advice I can get on this one.

I am soon to enter my last year of college and have a loan that I use to pay my rent. I want to get into a multifamily home this summer. In my area a decent multi-family will go for around 150-200K. I have great credit and my parents are willing to be co-signers. I currently serve tables and don't have much income to show on paper. With that being said I have someone who is willing to give me anywhere between 20-50K given I can prove to him that it would be a good investment with his money. My idea is that I get an FHA loan and live in the property for my last year of college. I don't personally have access to a lot of capital but feel with the money of the investor and my college loans that I may have enough to make this work.

So my questions are how do I make this work?

How do I structure a deal with my investor in order for it to be worth it for him as well?

Joe Villeneuve · Answer

Let me add this.  You are asking the wrong question first.  Your first question should be:

What is the maximum I can pay for this property and make a profit/cash flow?  Nothing else matters.

Bob Okenwa · Answer

@Camron Cottam

You're going to want to make sure you have the income to support the monthly payments as this is what you're lender is going to look at first. Once that is taken care of, going FHA is your best bet. The lender will want to make sure the down payment is at worst a gift if it is not your own savings. Using loan money for a down payment isn't allowed. I'd assume the investor would want a return of their  investment to the tune of 10% of what they loan to you or a split of the profits.