My wife and I are under contract on a duplex currently (purchase price 283). While I was telling a close friend of mine about the property he said to let him know when I’m purchasing my next property and that he has funds and wants in.
He could probably provide 140 and I thought about pitching him on splitting the current duplex with him (I’d have a mortgage on the other $140 and would essentially get my deposit back out so I could hold my funds for another property. How does someone do this (tax-wise and legally speaking)?
I am purchasing it under my name (not an LLC currently)
It wouldn't be an exact split since you will still be paying taxes on the rental income so its best to create an LLC and keep it all on paper. You will have to get your CPA and an attorney on the call and discuss how to handle this. It will take you an hour's fee of your CPA and attorney but you will get the clarity on the partnership. Just have all the questions ready before setting up the call.
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