First partnership - with a first-time home buyer
Hello everyone! This is my first time posting on the forums, though I've been following the community for about 7 months now. Here is my question:
I have a friend who wants to invest in real estate with me as a partner. I am unsure of how to set up the partnership. He is a first-time home buyer, living with his father, and isn't really interested in getting a place of his own although he is open to the idea. He has excellent credit, 750+, $4-5,000 in cash that can be used for a down payment, and a crazy low debt-to-income ratio. I am an active flipper and do not want to sink any of my own capital into a rental at this time, which he is completely fine with. I can find the deal, manage the property, and do any minor repairs needed.
My first thought is to buy a small multi-family which run from $45-$74,000 on the cheap end in my area (Johnson City, TN), I take care of everything other than the loan, and we split the cash flow.
How would you set this partnership up? Both names on title with only his on the mortgage? How can we use the fact that he is a first-time home buyer to our advantage?
Thank you so much for your time!