I'm currently living overseas and am thinking of moving back to the states by the end of the year. I already own 2 properties (6 units) with conventional 20% down payment investment down, but would like to try something a little more creative to sponsor my next co/investment.
Considering two options:
1. House Hack on A or B class four unit residential building, with a 3.5% FHA loan down payment with a co-investor. I commit to living in the 4plex for one year for x% asset management fee during that time. Co-investor and I work out the sharing of down payment, closing and rehab costs, CapEx., etc. Partner and I split equity 50/50, with agreed exit strategy.
2. House Hack on a much larger C or B class multifamily, 10-30 units with co-investor. My cash investment would be 10% of the down payment, a commitment to live in the complex for two years for x% asset management fee and rehab services during that time. Co-investor provides majority of the financing and I provide majority of on-site services. Partner and I split equity 50/50, with agreed exit strategy.
Note: i have experience with design, architectural drawings, construction and property management, etc. I am flexible to live in any state, but prefer Texas, Colorado, Florida or South Carolina.
Looking for analysis and feedback on how to make this deal better!
Bueller? .....Bueller? :)