Newbie to investing would you borrow 40k

[James J.]

I'm new to investing world, I'm very interested in buying a duplex in our area. Problem is I don't have much to put down. I do know someone willing to become part of an opportunity, just wondering how to go about it. I have found a duplex for $115k. Needs about 30k in rehab. It then would be worth 150-160. Rents in area are between 825-900 a unit so 1650- 1800 a month total. Taxes are 3400. I found someone that has 50k that is wanting to invest. I was thinking I could use that money for down payment and rehab, then finance the rest and that would make my total monthly payment around 900. My plan would be to keep it long term. Does this sound like a good investment, and how do I go about making payments to the investor? Or paying him?or do I not pay him and split profits at a different time?

[Cortney Reid]

If those numbers are correct there isn't much equity in this property. I could see how the loan could be beneficial, but the numbers just doesn't work as an investment.

115k+30k=145k

160k-145k=15k

Just not a lot of room, and also you would structure the loan and pay back interest.