All Forum Posts by: David Dawodu

Thank you all for your advice. I really appreciate it. @Nick Patterson I will read the Rich Dad Poor Dad book "Tax Loopholes" by Garrett Sutton that you mentioned. @Michael D. this situation could bring tax headaches that I would rather avoid but I will have to find out more about this. @Chris Mason I'll look into "non-occupant co-borrower" term. Thanks again helping me out everybody. I'll let you know what I found out from my research.

Hello BP community,

I am confident that someone in the BP community will be able to help me with a deal I am considering. My brother (who lives in San Diego) and I (live in Chicago) have partnered on a 2 unit buy-and-hold rental property (consisting of 2 single family houses on the same lot) in San Diego in 2013. We have done pretty well with positive cash flows and were able to do a cash-out refi of about 75% of our original investment.

Here is the proposal:

Purchasing another buy-and-hold duplex in San Diego. My brother would like to live in the smaller unit (1 bed 1 bath) unit andwe rent out the larger one (3 bed 2 baths). This way we could qualify for the lower interest rate and down-payment that a primary residence would afford. We would be equal partners in the venture and my brother would pay rent for this portion. I think this could work in terms of the deed, title and mortgage but I am not sure how we would share the tax deductions. Does anyone have any thoughts or experience co-owning a primary residence but not living in it? Is this a good idea or would you suggest just owning it as an investment property?

Thanks!

David.

Best of luck Jerry. I would be interested in the numbers as well. Which neighborhood is the property in?

@Linda Liberatore, Thanks for the links and very useful information. Much appreciated!

Welcome to BP Michael. I concur with everyone who responded earlier - wonderful website and beautiful pictures of your work. Wish you lots of continued success!

Welcome to BP Nicholas. You'll find a wealth of knowledge at this site. Use keywords in the forums to research topics you are interested in and read the blog posts. Attend the monthly Chicago meet ups to get to know other real estate investors. Don't be afraid to ask questions; you'll find that folks are really helpful here. Welcome again and congrats on taking your first step in real estate investing!

It's $600 in payments during the tax year. Hope this helps! Good luck! 

Thanks @John Suralik. I am pretty excited because the property has cut our housing expenses in half from when we lived in our first condo residence. We plan to live in the house for 2 years and house hack another 2 - 4 flat. 

Thanks @Fred Sams, @Melissa Gittens, @Rick Santasiere. I really appreciate your encouragement!

Thanks @Jerry Stanford!