Partnering on a property, Splitting a mortgage and title??HELP!!!

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Hi everyone! So,  I did so well with my first investment property (we bought low in Ocean City Maryland, put a lot of sweat equity into it, and rent it out on airbnb ) my parents want to partner with us to do a second investment property! Its really exciting because this enables us to get another water front property! So I'm sooooo new to all this. So our primary residence is under my name, our second home (Ocean City Beach House) is under my husband name. Both are traditional mortgages. For this new investment we are going in on it 50/50 with my parents. They have one mortgage with their primary residence. What are our options? What is best? Can we get a traditional mortgage between the four of us? DOes it have to be an investment loan (putting 20% down) because we may want to keep some of the money to put more into the renovations. We would like to do a traditional loan to get a better interest rate and have the option to put less than 20%. Should we find another mortgage company than who we had for our first two properties? Thanks for any help or direction!

Hi Rebecca,

I think I saw you post about your first investment a while ago, glad everything's still going well. As far as "traditional" loans, you're not going the be able to get an fha loan on an investment property, so conventional is pretty much your only option. Not knowing anything about your financials, having 4 borrowers isn't in and of itself an issue, it just means there are 4 times the number of documents you'll need to provide. I'd suggest if you can qualify with just one or two of you, then just have your parents give you the money on the side. To your point about having money left for renovations, you can put as little as 5% down on a conventional, but how that's affected by the investment status is decided by the individual lender.

Then you have "investment" loans, which will most likely all require around 20% down, ours requires at least 20% with excellent credit. These will also have higher interest rates, but the trade off is they're much easier to qualify for as you get more properties. This is all pretty general but if you have any specific questions I'd be happy to help!