To Partner or Not To Partner- That is the Question

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Good Morning BP,

I have recently been looking at a bunch of properties in the Chicagoland area and am running into a dilemma - I'm finding great properties, but do not have the capital to do anything. For example, I found a 4-unit property for $550,000 in a good area - double lot, commercial space on the ground floor, and very well maintained, the only thing it needs is tuck pointing. My thoughts are to go in at $520,000 which would be minus the $30,000 for tuck pointing. I ran the numbers and that property would give a $1,000 cash flow or 9.25% cash on cash.

However, a good friend of mine told me about "Home Possible" which I could possibly get properties for only 5% down. If I went this route, I would be looking in areas that aren't the best, some of them are around 6-7% ROI and I would essentially empty out all of my savings. My question is: is there an experienced investor out there that is willing to work a deal with a newbie (i.e. they finance and I maintain/do repairs on the building while learning from them), or do I have a better chance going it alone?

Any advice is greatly appreciated. Thanks everyone!

@Jonathan Miller you should definitely speak to a lender about the home possible loan. I have clients that use it all the time, and it isn't necessarily for "bad areas" so much as certain census tracks that the government wants to encourage investment in. Clients of mine have used it in Forest Park and Berwyn, which are both solid neighborhoods here in the western suburbs. You can also look into the FHA 3.5% down loan, or even the FHA 203k streamline for small projects like the tuck pointing one you mentioned.

If you are looking in the city, you should connect with @Brie Schmidt and @Charlie Shields . Also, if you need a good investor friendly lender, shoot me a PM and I will connect you.