They charge half month rent.

You should be able to get a conventional loan with 15% down, although they'll consider it an investment property and will likely charge a higher interest rate.It obviously depends on the lender, credit score, etc,.

That being said, finding the 4 Core (Deal Finder, Property Manager, Contractor, and Lender) is imperative.

He won't get hit with any taxes and I will just set it up as an investment/rental property even though I will not actually charge him rent....Does this make sense?

How do electricians charge for their services?

How do plumbers charge for their services?

Quickly file a Small Claims Lawsuit for the last month's rent and late charge. 

Would like to charge over $3000/month rent.

I am hiring a property manager but still I am the one who will be in charge of the project.

So we need a third partner with money as I continue to hone my skills at finding and analyzing deals for profitability and we'll have our business core team.