All Forum Posts by: Josh B.

Property in every shape and form is a duplex, but is labeled as an "on-site condo" with each side being labeled as it's own entity "condo". Meaning that each unit can be sold/bought individually from each other and each is taxed separately. We figured this out after the lender dug through records and after the home was put under contract.

Currently working with a lender that will allow me to take out 2 mortgages for the entirety of the duplex. I'm able to pay lower property taxes on one side this way as I can count one of the "condos" as a primary residency.

I've never seen or heard of this before, this seems unusual to both the lender and agents especially in this area. Does anyone have experience or knowledge about this type of scenario? Is there anything I should be wary of here? How is a home like this appraised?

Thanks,

I've been recently looking at an investment opportunity where I have the potential to invest in a condo right outside of a popular travel destination. Within the city that this resides outside of, there are strict zoning policies for condos being used as investment properties. Because of this, they're creating a resort vacation community just outside the city but well within the tourism hot spot. Across the street is already a popular resort, gold courses, beaches, ski slopes, you name it. They're planning on building (phase 1) a residential area in a park-like setting with high-end luxury "small homes" (detached condos) rented out at 300/night (weekly rentals). They cover furnishing down to alarm clocks and artwork - bunk beds are included etc. They are creating these condos specifically for the purpose of investing in this hot area without the problems with zoning. They are also handling the rental process and it's very hands-off unless you plan to use the property privately. Phase 2 will include a high-end shopping district built into residential community itself, tenants can walk from their cozy vacation home to a starbucks if they so desire. They've mentioned that because they handle rental income they actually pool it together from every condo and distribute payments based on your contribution as an investor - they say this is to ensure equal distribution because some condos will be rented for the summer only and some during the winter etc.

This process seems relativity new to me, I couldn't find much online about this method of real estate investing. I did find an Investopedia article that sums it up briefly (https://www.investopedia.com/terms/r/rental-pool.asp), but I haven't been able to weigh pros/cons from outside sources. Is there anybody that has invested in something like this before or would see problems with it as an investment?
 

I'm wondering what kind of % or structure our partnership would fairly have under the following circumstances. The current situation is I bring 100% of the capital along with actively managing the properties (as well as any labor etc.). We're looking to both invest in multiple properties under the same business. He would be actively involved in these deals as well. We both work extremely well together, we've known each other for over a decade. From experienced investors, what structure would make sense here?

One thought I had was to be more hands off and allow him to be an active property manager (no prior experience, he would need to be versed in this) ... Another thought was to do a 80/20 split for equity and keep ourselves active until he's ready to step up and take more authority and I take a step back from management - in which case we'd do something like 60/40 ?