These two lines really stand out to me: "we think we can purchase for $65K" . Are the two of you signing for this home so that you are mutually responsible for it's maintenance, upkeep, payments etc and both entitled to use it's income or equity as you see fit? "I will merely help with the down payment and monthly mortgage." Merely? Are the two of you putting in 50% of the downpayment and paying 50% of the mortgage together? If the friend is going to live there, what will be their contribution to this endeavor? Will they manage the property since they will be onsite? If you have a falling out will they move from the property since they will consider themselves part owner? This is a big step for you and it could be financially rewarding I just can't tell from what you have said why you need a partner? You qualify on your own to do this so what is the purpose for involving someone else who it appears cannot bring the same level of autonomy and stability to the table? Is your friend going to pay you for using this property as a primary residence? I would only do this deal if you were going to do it on your own. If you are leary of managing the property get a property manager to handle that for you. Tell your friend your fiance is really against the idea so you are going to put it on hold for now (in contracts this is known as deferring to a higher authority). You can still buy the house, just put a property manager between you and the renters so noone who is renting will know you are the owner. Once you have purchased the property, have an attorney transfer the owner name to an LLC that can be set up for you by the real estate attorney. Have the same attorney review the documents before you buy as well. Long story short, make a profit and save a frienship.