Duplex w/daughter who lives on property

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I am have some money to invest and do not want to go in the stock market. My 25 year old daughter wants to buy a duplex and live in one side and rent the other but she does not have the income to handle this on her own. I would be providing 1/3 of the 20% down. I have no idea how to structure the deal so that it is fair to both. How are repairs handled? How are rent payments handled? How is the value of her living in one of the units handled?

Would love any input.

Thanks, MArti

First of all, congratulations on getting started in real estate investment. Dealing with family can be fraught, but it can also be VERY rewarding.

This is only one possible way to set up the deal, but you could:
You treat the property as a business and any down payment as a private loan to that business. Since you are providing 1/3 of the start-up capital, you own 1/3 of both properties with your daughter owning the other 2/3. You each accrue interest on the loan you made to your business. Your daughter rents her half of the duplex from the business at market rate. All rents collected go into a common pool out of which all expenses (repairs, mortgages, etc) are covered. At the end of the year, if you have more money than you need for a safety fund, you pay down the private loans that you each made to your business until those are cleared away, then you make proportional disbursements. If you're daughter wants to make improvements on her half of the property, then just raise her rent to accommodate.

Lots of ways to make this deal work, but this is certainly one.

Good luck!