Keep my place - Good Strategy?
Hi BP!
I have an idea in my head and I need some insight from experts.
I bought my apartment in 2008 and now my family has grown and we have to move. I always had the idea to hopefully be able to keep this one whenever the time came to move, but unfortunately I am not there. AKA, i don't have the funds for the downpayment for the new place without selling this one.
So, thinking of ways to keep this one AND get a new place I thought that maybe I can get a "partner" (really a family member or close friend, I have some options) who might be interested in being my partner on both properties. My plan (please excuse me if im a little crazy on this one):
1) Creating a partnership or trust to own both properties.
2) The new partner would invest the equivalent amount of the down payment for our new place and become a partner.
3) The percentage partnership would be whatever the down payment amount equals in the % of the value of both properties, or a couple of percentage points more as an incentive.
4) We would rent out this apartment (there is some cash flow to be made) and I would be responsible for paying the mortgage on the new one and keeping this one rented.
There are some legal issues to be had with regards to when, how and if we decide to sell, but maybe i am not so crazy after all and I can make it work.
What do you think?
Thank you!