Partnering with family on existing home

[Dominic Eberhardt]

I recently bought a home in my area back in May, moved out of my grandmothers house. She’s wanted to fix up and sell the house for a while now as she’s retiring. I want to start investing in properties as the home i just purchase id like to eventually be a rental, started to read books podcasts etc to start to educate myself on this world. I’ve since seen her house as a great opportunity for a rental. I’ve got about 60k left over after purchasing my house. Her home needs a good amount of work, 20k-30k or so. Originally I was going to partner up with my father to help with the purchase and rehab costs, eventually buying them out down the road to make the home fully under my name. I spoke with my grandmother about this after giving it some thought on my end and she came up with the concept of partnering up with her on the matter rather than my father. In my eyes this would be great as she owes ~80k on the house at the moment and would be better to continue with the existing loan rather than starting a new one all together. Ultimately we’d like to both have equal stake in the home however I’m not sure how we’d go about this to be beneficial and smooth for the both of us. I’ve started to do some research on how this would work Ive so far come up with -She gifts me my stake in the home, I cover the repairs and pay her an monthly up to the 50% stake after the repairs are made -Purchase agreement for 50% stake in the home -Partial Purchase with payment plan for the rest of the home If there’s anything else I’m missing or if you all could provide me with other avenues to go about this it would be helpful. Any questions regarding the situation or further information needed from me please comment. Some additional numbers and info -The properties around the area are going for around 300k-325k in great shape (consider this home needs 20k-30k worth of work) -I have 60k saved to invest -~80k left on the loan in her name - I’ve spoken with other owners to rent in the area and are getting 2400-2600 monthly Thank you in advance.