How to co-own a primary residence but not live there?
Hello BP community,
I am confident that someone in the BP community will be able to help me with a deal I am considering. My brother (who lives in San Diego) and I (live in Chicago) have partnered on a 2 unit buy-and-hold rental property (consisting of 2 single family houses on the same lot) in San Diego in 2013. We have done pretty well with positive cash flows and were able to do a cash-out refi of about 75% of our original investment.
Here is the proposal:
Purchasing another buy-and-hold duplex in San Diego. My brother would like to live in the smaller unit (1 bed 1 bath) unit andwe rent out the larger one (3 bed 2 baths). This way we could qualify for the lower interest rate and down-payment that a primary residence would afford. We would be equal partners in the venture and my brother would pay rent for this portion. I think this could work in terms of the deed, title and mortgage but I am not sure how we would share the tax deductions. Does anyone have any thoughts or experience co-owning a primary residence but not living in it? Is this a good idea or would you suggest just owning it as an investment property?
Thanks!
David.