Partner wants to move into rental after renovation
Hello all,
I am looking at a duplex for purchase. A friend had expressed interest in getting into real estate a while back, so when this duplex presented itself, I contacted him to find out if he would be interested in partnering - he was. As negotiations with the estate from which we are purchasing are ongoing, he develops an attachment for this home and decides that he wants to move in in order to get out of his current living situation. While I am ok with helping him get out of his situation, it is of the utmost importance to me that I receive cash-flow and the equity in this property, as it would be my first rental. My intent is to leverage the equity in order to purchase more properties in the near future, and this house has the best combination of location, conditions, and potential than anything else available to me. If the plan is to leverage the equity in this property for future purchases, should I expect him to pay full market rent? I'm trying not to cut him out, despite the fact that I know he needs to just buy himself a home and come back to me when he is ready to invest.