First off thanks to all that have replied to this post. I understand that having an OA is important whenever dealing with a partnership. I have worked on an OA for us, but being two years into the partnership it turned out to be a lot harder than I thought it would. We were/are, depending on what comes out of this, best friends for a long time. We had laid out our goals on the table before we ever started investing. He knew I wanted a career and I knew he was short term. Looking back at it now, that should've been my "ahh ha" moment to develop an OA, but I never would've guessed it come down to this. I hope this doesn't ruin our friendship and I attend not to let that happen, but I also don't want to own a property that will ruin myself or my marriage with my wife. Consider lesson learned here.
Our involvement in this property is soo messed in here I don't even no where to begin. From the start we were doomed to fail, and I'm sure I've made some posts about this years ago, but with a little hard work, dedication, and diligence we were able to make this into a highly profitable situation using the 2% rule. Not to mention our ROI is around 35%, I'd like to think that is a win for us on our first property.
He really wants to sell, and to his credit I understand why. It's the only way we'll be able to make this fair for both parties. But me being the stubborn one or realistic however you want to put it, the money just won't make sense to sell. The area is up and coming, but we're talking years and years away. We'd never be able to get this house to appraise for what we have invested and we'd make way more money renting then we'd ever make selling right now. We would need the appraisal to comeback around 56K just to break even, this includes us getting our original 12k invested back. With all the foreclosures in MI, especially DT Grand Rapids that would be a stretch. During the 4 years of ownership 3 houses within 200ft radius have went under, our neighbors twice. These are the kind of comps we are looking at.
To be truthful, I never wanted this property in the first place. We viewed a week before the auction and then purchased it for 5K over our bottome line which was 15K. Just 25% over our budget...but like I said we were able to make it work. Since then, I've done nothing but adore this property b/c it has provided extra income and that was exactly what I was looking and still am looking for.
But enough of me and my emotions right now ;) I haven't thought about another investor and that is a great idea. I think that would be something I will tell my partner as an option. If he wants to go that route I have no problem with that at all.
And to answer the other question, YES he could force a sale if he wanted. I don't think it will come to that, but he does have the final say due to some unfortunate circumstances.
