I'm currently a part of a group of 3 associates looking at consolidating our efforts and buying SFH rental properties.
Additionally, I am a homeowner in an extremely hot market for both rental AND purchase (20% increase on my value in the last year and rents are currently going for about 70% above my monthly payment all in). I'm open to the potential of moving but I'm currently not looking for myself.
Has anyone ever worked with a group/structured a deal where - putting yourself in my shoes here - you leveraged the buying power of a group AND the equity in a primary mortgage to:
- Buy a new property for my primary residence
- Start renting my existing property under the guidance/with cash flow going to the group
The reality is that my existing property is well-maintained and turn-key rental ready but my DTI may not warrant buying a new property solo. I want to find a fair way where my counterparts could potential put cash down (in a fair way) to "buy in" to the rental piece while not losing out on gained equity.
I haven't seen much with this type of scenario so if anyone has thoughts or have lived through something like this I would love to hear about it! If there are any points of clarity that would help with this, please let me know this as well!
When you sell a house you want to walk away and never see or hear from the buyers again...or do you want to hear about every time your “well maintained” house has issues? Even if it is questionable how things happened and where fault lies?
@Marian Smith - The hypothetical situation would involve the group owning what is my current residence. We've been considering properties that require a lot of work so we would potential turn my current primary into the group understanding that it would be treated the same as any other property we would purchase. The team would own any responsibility.
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