Buying a Duplex with a Friend
Hi all,
I have a friend who would love to buy a duplex and we've been kicking around splitting the deal - we'd get in at 5% (or less) down and he would live there as the owner occupant. I've never done this type of deal with someone before so I'm curious in how it would be structured.
Can my name be on the mortgage with my friend without me living there? Or can I have my friend have the mortgage in his name and we're both on the title? And does anyone have any experience or ideas on how the rents should be managed in this scenario? I'm thinking that I'd have one unit pay market rent and my friend would cover the rest of the mortgage with his rent. It's a win for both of us because he gets under-market rent and my equity begins to grow. When he moves out at some point we'd split all profits. Does anyone have any thoughts on this?
Thanks!