Would this person be a partner or just a co-signer for the debt? Either way, depending on your relationship with this person, I would need a whole lot more than $200-300/month for exposing myself to the that kind of debt. I would be looking at 3-5% personally, but I would need more numbers to know for sure.
@Maria Luna Agree with Patrick's post, no way I would put my credit and the possibility of being foreclosed on for $200-300 month.
As a flip side of this, I once partnered with someone with them putting in the down payment and I put the loan in my name. We split everything 50/50.
The person co-signing is a friend of mine.
The building is $315,000. 4 units, and each unit rents for $800.
This person is only going to be a co-signer, not partner.
I agree with these other guys. But to be honest, I just don't have enough trust in people to where I would do this for someone. You have one hell of a friend.
@Maria Luna Just curious what you ended up doing Maria?
The rent would have to be 20-30K/mo for 1% to be $200-300. You said rents were 800/unit, 4 units=3200/mo. 1% of 3200 is $32/month. Unless I'm missing something here.