Buying First Property with a partner.

[Patrick Dundon]

Hello all,

I'm 25 and looking to purchase my first rental (multi-family) with a friend. Is the best way to do this through a LLC, or buy than transfer to an LLC, or buy and just have an umbrella policy in place?

Also, we spoke with a representative on Rocketmortage who relayed that the house we are looking at ($65,000) was deemed to high risk for them to give a loan on even if we put the normal %25 down. She cited a Fanni Mae law neither of us is aware of. The house is a family friend's and currently yields 1,600 a month and we really want to get it. Appreciate any help. 

Thanks,

[Bryan O.]

@Patrick Dundon good luck finding a lender that will loan less than $50k. If your lender is citing Fannie information, that is a traditional loan to your personal name. I like to be more thorough, so I would recommend an LLC with responsibilities, contributions, and exit strategy defined and a loan to that LLC. That loan would have to be a commercial loan and those do not follow Fannie/Freddie guidelines.