All Forum Posts by: Brian Johnson

The repairs to the house would be minor and would bring the house to rental ready condition. The profit would be around $2000/month so it would be throwing good $ after bad $. 

I would like to take ownership of 50% of the house as well as manage the property under a PM agreement. 

I have the opportunity to partner with an existing homeowner in a college town to rent his property out. Let me explain... He currently lives at the property as his primary residence, but he will be moving to a home closer to work. His house is in prime rental area and is adjacent to a property I own already. Purchasing the property isn't an option. He has a home equity line of credit on the home that maxes out its equity. So if it's worth $200,000, the home equity line of credit, along with his mortgage, bringing the total amount owed to right up around $200,000.

I was thinking that I would bring in a certain amount of money for repairs to bring the home to rental ready condition and to have cash on hand for a safety net. I will be managing the property also.

My questions are,

- how would you structure a deal like this?

- what do I need to know

- how do I protect myself.

- how much should I charge fro running the property.

- are my expectations realistic

The house cost around $300,000. Im just trying ton lock down a Property Management Fee. Is $400/month (10% of gross rent) too much or right on?

no, its a single family house.

I couldn't have said it better. The gross rent will be around $4200/ month. $400/month is a reasonable PM fee?

50% of the purchasing cost and construction cost to bring it to rental ready each. We also need a mortgage.

My partner and I are one. We have an LLC and already own a property together with plans on more investments, this being a potential one. Our LLC will act as the partner. Does that change you assement? Another PM?, meaning property manager , correct?

I am looking to partner with a friend of mine. He is going to put up his credit and half the money for a but and hold purchase. He has agreed to let me run the property and he is going to act as a silent partner.

My question is, how should I structure the deal?. I mean I have an idea, but I have never done a deal like this.

What details am I missing and what should I be aware of?

The property should return $1500-$1700/month profit. Should I structure the agreement like a 55-45% ownership deal or should it be 50/50 and an agreement with my current LLC. to manage the property.

I am a newbie and any and all advice would be useful.

- Brian