Just a quick over view.... I have 60k heloc and 10k cash and I am in the process of getting pre-approved for an investment property mortgage. I have a 45k/yr w2 job, my wife has a 30k/ w2 job. I also have 125k mortgage on my home.
The property i am interested in is listed for 129k and has been since 2013. Its a 4 plex..each unit rents for 650.
I was at the property doing my due diligence. After talking with a 4 year tenant i find out all the good info that i was looking for along with that i find out she would like to buy the property if she only had the down payment money. After our convo i suggested she get pre approved to buy it. And offered a partnership of some sort with her if she would carry the mortgage... and tax break if she lives in one.. and i have the down payment. Im not sure how to set the best contract up for both of us. I thought it'd be best to not have the mortgage in my name? Since i am limited to the number of them i can have But i am un sure? Or should i just buy the whole thing for myself? Any help would be cool. Thx Chad
I would say do the whole thing yourself. Unless you had another deal in the works that would give you the same or better cashflow/equity. I would keep her info for a future deal though.
The risk, as I see it, is that you'd be partnering with someone who you don't really know and who intends to live in the property. What would you do if things went south between you? Or she didn't keep up her end of whatever agreement you came to? Or she caused problems at the property? Or any number of other scenarios? You wouldn't be able to evict her since she'd be an owner. Not saying it couldn't work, but that's a big risk and definitely something to think about.
Also, on another note, if you do end up making an offer hopefully it won't be for the $129k listed price. I don't know anything about the property, but I can tell you that if it's been listed at that price since 2013 then it isn't worth that or someone else would have bought it by now.
Just my two cents. Best of luck whatever you decide.
thanks guys i always forget the risk factors! Sounds like im going to go for it by myself. I want to offer 100k. Just to have the bigger spread. Also the tenants in three of the units are "housing resource" tenants so they are a lower income and have been vacancies due to that.
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