Just a little backround first. I'm a 21 year old that lives with his parents still, And i have a pretty decent job where i will be making 6 figures within the next couple years. Im very good at saving money and i want to put it towards something rather than just letting it build up in my bank account. I have been trying to educate myself through the bp podcast, Matt Mckeevers youtube channel and other readings.

Something I've been thinking about is there's another apprentice at my work that I've known for a long time and he too will be making 6 figures in the next couple years. He wants to buy a multifamily with me where we would live in a two bedroom unit and rent out the rest. We both have about 50k each saved up for a down payment and we would be able to pay a house off pretty quick with our combined incomes within the next couple years. 

I guess my main question in regards to that is, what are the pros and cons to splitting 50/50 with another person? Is it a better idea to do this alone? Am I better off living at home for a while still and saving up for a bigger down payment? I'm in no rush to move out, but from what I've learned so far the sooner you get into investing the better.

A couple other things:

1. Are there any meet ups in St. Catharines or Niagara region?

2. Links to quality forum posts are key bc I haven't quite figured out this site yet lol

3. I'm not very experienced but willing to learn. I do work full time during the week, but if we could work out something where we can trade work for knowledge i would be down for that.

Thank you for taking the time to read/ respond to my post. If your response is too long to type, we could always meet up and Ill buy lunch!

Congratulations!  Particularly on your ability to save money -- that's an awesome habit that you should hold on to.

I'm not in your area, so I can't comment on your questions that way, but I will just add my 2 cents around you working with another.  I think working with another investor is a fabulous way to leverage the strengths of one another, and get more done than you otherwise might.

The only advice I would submit is that you protect that relationship with formal agreements that spell out all of the terms of your relationship.  Some things that could come up:  who decides when and what to rehab?; what happens when one partner needs to liquidate?; what happens when there is a dispute?  And these are tip of the iceberg questions.

Brainstorm with your potential partner about what the issues might be, discuss them, then formalize them in a written agreement that you have an attorney review and draft up.  

A little planning on the front-end of your partnership may save you plenty of headaches in the long-term.

Good Luck!

There are a lot of house hacking opportunities in Niagara Region. Especially in St Catherine’s and Niagara Falls

Thank you Tara, I would definitely be treating this as much like a business as i can. I realize peoples priorities can change over time and I will be getting a formal contract written up even though he is a friend. 

I also realize its near impossible to do things 50/50 from what I've heard, I'm currently trying to find threads on here with peoples experiences.

Hello there Hai, the main issue I'm having right now is finding a place that comes anywhere near the 1% rule. Any suggestions?

Good on you. your story sounds like mine did when i first started out. saved a good chunk of cash living at home then go into investing. As for having trouble finding a property that meets the 1 percent rule, are you looking at turn key properties?

Hi Tim,

I'm from Niagara region myself and looking to get seriously into investing.

Happy to connect and talk more! I believe there is a regular meet-up in St. Catharines, but I'm not sure when the next one is? (I just heard/saw it mentioned before). If you find out the name/page for it please let me know

I know of a condo development in Niagara Falls. Let me find the link... one sec

Oh, I just noticed you're looking for a multifamily... here's the condo development link if you wanted to consider that HERE

@Mike Oliveira I don't want to get into anything too crazy at least on first few so yes pretty much turn key. Paint, floors and maybe a kitchen remodel are the most I'd want to do. I'm also trying to make connections where I can find properties before they hit the MLS, and hopefully with distressed sellers. I'm still trying to make these relationships, which is why im on here lol! Always down to meet up and chat if your interested as well, I actually work in Hamilton.

@Eric Mory I will try to find it! I'm always up for a one on one if neither of us can find this group

@Meghan Chomut Im not trying to get into condos/ air bnb but Ill still check out that link for sure, Thanks!

@Tim Neufeld can you connect outside BP? I'm on facebook as well

The reason is I ask about the turn key is beaucase if you look for something that needs a decent amount of work you will find the 1 percent rule easier. I’m always interested in connecting. Let me know 

@Eric Mory i dont use social media too much, but i do have facebook if thats the easiest way to reach you.

Just to add to what @Mike Oliveira said. You may need to add some sweat equity or work on a property to get it to a 1% deal. But it will change your cash on cash as you will be sinking in more initial capital just to get it to 1% in rents. You can always refi down the road but your money will be tied up till then.
Sometimes you shouldn’t just look at the 1% rule bc even a 0.75% deal might be better as it may have lower taxes and less work required and will yield a better overall cash on cash. You need to analyze those marginal properties as a whole.

Thank you @Hai Loc Im trying not to get stuck in the so called 'analysis paralysis'. Ill start to look at stuff that's turn key with a little lower expectations on the cash flow. I would probably do something that needs a little more work, im just worried about getting contractors and going too much over budget

Originally posted by @Tim Neufeld :

Thank you @Hai Loc Im trying not to get stuck in the so called 'analysis paralysis'. Ill start to look at stuff that's turn key with a little lower expectations on the cash flow. I would probably do something that needs a little more work, im just worried about getting contractors and going too much over budget

 That's part of the game and don't expect to be a plethora of deals out there. You are in the same boat as many others. Either be patient or lower your criteria a bit. 

@Tim Neufeld , welcome to the BP community! I applaud you for taking the initiative to get started in real estate investing at a very young age! I have some experience investing the St Catharines area and would be willing to meet with you and @Eric Mory and any other local investors to discuss our respective ideas and to answer questions.  I am currently searching the Niagara region for a multi-family rental at the moment myself!

@Robin Valadares Ill pm you and @Eric Mory , Maybe we can set something up!

Originally posted by @Tim Neufeld :

@Robin Valadares Ill pm you and @Eric Mory , Maybe we can set something up!

Have you guys ever looked in Welland or Port Colborne? 

Hey Hai,
I'm investing in those areas. Let me know if you are ever in the area. Love networking with new people who are already actively investing in the area.

Likewise @Hai Loc and @Shawn Rea . I'm always searching around the Niagara-St Kits-Welland area for single family and small multi-family homes. 

@Meghan Chomut

Hello Meghan, do you know what builder this is?