BiggerPockets

I have a potential partner that is also looking to buy his first home. How could I structure a deal in which he is the tenant and partner?

Some of the advantages I see:
- We wouldn't need to put 20% down for a conventional investment loan.
- I may be able to capitalize on any first-time home buyer incentives he gets.
- I would trust the tenant.
- My partner would be conveniently located for updating the property.
- There would not be a rush to flip the property.

Questions:
- Would I be able to collect any monthly income, or would I have to wait for sale of the property?
- What type of contract should I put together to protect myself?

Thanks in advance!

- Blake

Well we are looking to start acquiring rental properties together. He can afford it, but we were just brainstorming trying to figure out if there is a way to make his house be our first property.

Thanks, @Tracy Royce. I actually read your post last night...great advice! Like I said before, we are currently just brainstorming on how to kick this thing off. We figured he could live in it while we fixed it up (it's a street over from my house), and then when the conditions are right, we would sell it and make millions! OK, more like $20k.

@Blake Kinsman,

Follow what @Tracy Royce said very carefully. It is a very tight situation working with friends. I have seen MANY friendships broken due to working together. I've seen many dissolve and end with legal issues.

-Steven