Updated 5 days ago on . Most recent reply
Business structure for STR partnership
I'm new to REI, I have one long-term rental, and have been wanting to get into an STR. I have a friend who is looking to move from her rental home to her first home purchase, and I wondered if we could buy a small multi-family home with her living in one unit and STR the other unit/s. We have just started talking about this and she is very interested in doing it so far. Also, we both have W2's, so we could split the workload, and both potentially benefit from tax advantages and income (hopefully). We would have a lot to talk about, a lot to learn and research to do before embarking on this, but I'm looking forward to the process!
My question is if we buy this together, how should it be structured? I'm presuming partnership and LLC. Since she will be living in one unit, could we get a mortgage for a primary residence with this structure? Could we both qualify as materially participating as long as we put in the hours?
Let me know if I'm posting to the wrong place, I'm new to BP.