Partnership with Daughter for first property - how to structure?
Hello, I am excited that I found this forum – seem like the perfect place to get some advice!
Here is our situation. I am looking to partner with my daughter to purchase a rental home. We found a good market with a high demand for rentals and they have homes in the $50-$60k range.
My daughter (30 years old) owns one house where they currently live and her husband owns another – this one is a rental property that has been going very well for one year now.
They don’t have terrific income at the moment and have no real savings. What they do offer is that they live in the area we plan to purchase our rental home and will do 100% of the property management. She is familiar with collecting rent, managing repairs and finding suitable tenants.
What my wife and I have is the capital to purchase the home. We intend to use a home equity loan to purchase this home.
So we will handle 100% of the money and she will 100% handle the management.
My question is, how do we structure the partnership considering she will not have any money invested?
Thank you!