Hi! I’m new to this community (insert “what’s new” expression here).
My wife and I bought a SFH (townhouse) in the Dayton Ohio Market over a year ago and rented it out after 7 months of occupation.
We have two tenants (one of them is my brother) paying $750/month combined on a $325 mortgage (insurance and PMI included). We have a $209/month HOA (smh... I hate spending that money so much) and set aside $75/month for repairs and maintenance.
To date nothing has gone wrong (wood being knocked on as I type) But I heard the phrase that family and Business should never mix.
1. Legally speaking can a family member function as a tenant?
2. What are some of your horror stories of doing Business (real estate related) with immediate family?
3. I now live in the Sacramento Market, specifically Roseville/Rocklin but would like to take advantage of the Dayton Ohio market by tapping into my brothers status as a NOAT (never owned a thing) and partnering with him on a house hack with a quadplex, effectively moving him out of my SFH but keeping him as a tenant in the new quadplex which we hope to 203B or 203k. Poke holes in this plan please, but understand that your holes are going to be used as learning moments to make this a success.
To address your most pressing issue, there are not any legal restrictions with having family as a tenant.
The problems happen if they become a bad tenant. It can be a very strained family get together if they aren't paying or if you evicted them for not paying. Or if there are any other landlord-tenant issues.
Roseville/Rocklin were a hot market when I was out there a decade ago. It's be a great market to flip or wholesale, and then buy cashflow back in Dayton.
As far as your plan goes, it's as solid as your brother. Everything you are proposing seems to hinge on his performance.
Welcome aboard @John Olaore
Free eBook from BiggerPockets!
Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!
- Actionable advice for getting started,
- Discover the 10 Most Lucrative Real Estate Niches,
- Learn how to get started with or without money,
- Explore Real-Life Strategies for Building Wealth,
- And a LOT more.
Sign up below to download the eBook for FREE today!
We hate spam just as much as you
Create Lasting Wealth Through Real Estate
Join the millions of people achieving financial freedom through the power of real estate investing