House hacking with FHA and a partner/investor

[Brendan Dwyer]

Hello all. I am looking to purchase a 2-3 family house to house hack using an FHA loan. I am wondering if anyone has done this but with a partner that would invest some money into the upfront costs (down payment, closing costs, repairs, etc). They would not live there and the payment would be in the form of a "gift" as it is a family member. In my market, there is little to no deals that could cashflow at all until I moved out. My question is has anyone structured a partnership in this scenario? My thought would be to split equity but I'm not sure how this would work. Thanks!

[Nicholas L.]

@Brendan Dwyer if the funds are a gift why would the giver need any equity in the deal?

[Brendan Dwyer]

@Nicholas L. It would be in the form of a gift for FHA, but in reality would be an investment for the giver, basically we would just be splitting the out of pocket costs

[Conner Olsen]

@Brendan Dwyer I would find out when you can put the property in the name of an LLC and then you and the partner own a portion of the LLC. It might vary by state so ask a lawyer in your state.

[Nicholas L.]

@Brendan Dwyer well, it's either a gift or it's a loan.  

[Joshua Janus]

I would start with putting the property in an LLC when you purchase to potentially avoid the acceleration clause.