Partnering to invest into a 2-3 flat building somewhere in IL.
I own one home and eventually going to do a long term hold in North Carolina by renting it out. I used my VA loan to start out my investing journey. Now, my plan is to buy a 3 flat building or something in that nature with my brother soon. My question is how would you attack this situation for tax advantages and rental income. Should I create a business account, how does splitting the initial investment work etc. Also, my other brother is planning on living in it too. What is the best way to approach this investment.
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@Christian Blanco I don't love the idea of partnering when you both have such limited means. Why not save up a bit until you can afford the low-down payment? Having a business account and an LLC will not make sense in this scenario since they will cost you upwards of 1k per year to have.
I've done three house hacks with my brother and we split everything 50/50. We have no formal agreement because we trust each other and each alternating property is in my name or his name. And we don't have any LLCs yet but we have a shared checking account for each property. I don't think you need to worry about setting up business accounts or an LLC yet but I'm sure some people would disagree with me.
I don't think our set up is optimal by any means but "done is better than perfect." It works for us right now.
