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I am looking at purchasing a 3 family. I will live in it and rent out the other 2 units. With the current tenants, my mortgage and insurance would be more or less paid, and the units are not even at market value. However, despite excellent credit, the mortgage folks have told me that I’m a little short on gross income, given the the sales price and debt to income ratio. I have an extremely close childhood friend who could/would sign on as a “co-borrower” so that I could make the income minimum. If my friend is neither going to live there or pay costs, what are the implications for her, tax-wise etc. She will put no money down. (I realize if I default or die she is liable) I’m just trying to get a general idea about the nuances of this. If anyone has had any experience with this, please share! Thank you.