Skip to content
×
PRO
Pro Members Get Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
$0
TODAY
$69.00/month when billed monthly.
$32.50/month when billed annually.
7 day free trial. Cancel anytime
Already a Pro Member? Sign in here
Pick markets, find deals, analyze and manage properties. Try BiggerPockets PRO.
x
House Hacking
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

User Stats

2
Posts
2
Votes

House hacking partnership

Posted

How would you structure a deal to buy a duplex if one partner is planning to live in the duplex and the other partner lives out of the area. I am about $50k short on my pre-qual for a duplex that I would like to house hack. My sister offered to help out but we don’t know what that would look like. 

User Stats

11
Posts
12
Votes
Nick Scannell
  • Investor
  • Madison, WI
12
Votes |
11
Posts
Nick Scannell
  • Investor
  • Madison, WI
Replied
Quote from @Libby Louer-Thompson:

How would you structure a deal to buy a duplex if one partner is planning to live in the duplex and the other partner lives out of the area. I am about $50k short on my pre-qual for a duplex that I would like to house hack. My sister offered to help out but we don’t know what that would look like. 

I don't have experience with this, but I love problem solving. My guess on what would make the most sense is to act a both an investor and a tenant. Assuming all things are equal (downpayment wise), it makes sense for you to get an equal benefit of Rent Savings + cashflow to your sister getting in cashflow. Start by figuring out what 50/50 would be if neither of you lived in the unit and made market cashflow. Then, your sister should get that in cashflow and you should get yours in rent savings + cashflow.

Rough example: 

PITI + Expenses = 2500

Market Rents = $1500 each side ($3,000 total) 

Cashflow if neither of you were living in the house = $500

Your sister should get $250 a month, and you should get $250 in rent savings (You pay $1250 a month in rent as opposed to $1500). 

Would love feedback on my thoughts if you (or anyone else) has them!

User Stats

1,400
Posts
1,313
Votes
Ryan Thomson
Agent
#1 House Hacking Contributor
  • Real Estate Agent
  • Colorado Springs, CO
1,313
Votes |
1,400
Posts
Ryan Thomson
Agent
#1 House Hacking Contributor
  • Real Estate Agent
  • Colorado Springs, CO
Replied

@Libby Louer-Thompson this is whatever you would want it to be. There is no right answer. 

Here are a couple of ways it could work:

1. Negotiate a monthly payment to your sister in exchange for taking on the risk of co-signing with you.

2. Give your sister some of the equity of the house in exchange for her tying up her ability to qualify for new credit by co-signing with you. 

BiggerPockets logo
BiggerPockets
|
Sponsored
Find an investor-friendly agent in your market TODAY Get matched with our network of trusted, local, investor friendly agents in under 2 minutes