Updated over 9 years ago on . Most recent reply
Investing With Family
Hey Gang!
I had a very interesting conversation with my Father in Law the other day, that opened up an opportunity. I'll give you the back story and then ask my question.
Backstory:
I am a recent college grad with my first real adult job. I have my first few paychecks coming in and I still live at home with my family as I am getting established. I have no debt, my fiancé has no debt and we both are sitting on 8,000 is savings. I have decided to go the house hack route and that's how I've gotten into real estate.
My Father in Law has owned two apartment buildings for many years. He is a mason by trade and is very knowledgable about construction and managing tenants. He has done very well for himself and is a great resource. I have picked his brain from time to time.
Here is the situation: I am looking for a small multifamily and he is looking to downsize to an apartment closer to his daughters.
The Offer: He will help me find a property, help with the downpayment and then occupy one of the units for 1-2 years as a renter. Once his daughter is finished with school, he will move into another house. The idea being he will give his rental money to us instead of someone else. I get help with the financing and total control of the property, as well as help fixing the property up.
The Question: would you do this? Do you see any downsides to investing with family? Does anyone have any experience they could share?