Both partners want to occupy separate units in a fourplex?

Question

I'm interested in purchasing a fourplex to start out a buy and hold career. My husband is soon separating from the airforce so we would love to take advantage of a VA loan and occupy one of the units ourselves. We have some cousins who are interested in potentially partnering with us and helping purchase half of the property and occupying one unit as well. This could be very helpful since securing financing for us might be difficult because we are transitioning into new jobs. Does this seem like a good plan? How would you structure the deal with the partners? Everything 50/50? Or would it be better if we just each did our own separate deal?

Joel Owens · Answer

You might want to get the loan before leaving the military ESPECIALLY if the field your husband starts working in is different than what they were doing before.

Lenders typically will look at leaving a company to move up in the same field somewhere else as okay but if you change occupations completely they like to see 1 to 2 years of stability before giving a loan.

Someone might be a great car salesman but then try being a chef and fail miserably at it so the lenders like to see a track record of success in the chosen field.

With VA it might be different and things might have changed since I did residential 10 years ago.

Jerry Padilla · Answer

@Sara Faile

I would recommend purchasing on your own. You couldn't use your VA benefits with anyone other than your husband for qualifying. Friends/partners can not be added onto the loan. I would wait until you secure jobs and use your VA benefits.

Nick L. · Answer

I would do your own deal. So many things can go wrong with partners, especially if one or both occupies.

Sara Faile · Answer

Thank you everyone for your input! Good to know Jerry about the VA restriction.

Thomas S. · Answer

If you partner have a lawyer draw up a contract intailing all details as to purchase, expences, exit etc.

Leave absolutely nothing to trust, go into the partnership as though all of you are total strangers.

Jon H. · Answer

A partnership is a great way to get in the game.  You can leverage other peoples time, income, credit, skill, expertise to all partners advantage.   Should you decide to do a 50/50 partnership. I would recommend methodically going through (with all parties involved) everything that could go wrong and write down how as partners you will handle those situations.  Also have a written contract between the partners spelling out everybody's responsibility.  Hope that guides you to further your goals :)

Both partners want to occupy separate units in a fourplex?

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