All Forum Posts by: Robin Castillo

@Robin Castillo

i would not partner - these types of properties are too small to support multiple investors

just house hack separately

good luck

Congrats on getting started. Partnering with lifelong friends can be awesome if you set things up right from the beginning.

My advice: don’t skip the operating agreement. Even if everything feels solid now, it’s important to clearly lay out ownership percentages, who’s bringing what to the table (money, time, skills), how profits and losses are split, and what happens if one of you wants out down the line. Think of it like a prenup for your business; it protects the friendship.

For taxes, the LLC will file its own return, and each of you will get a K-1 showing your share of income, expenses, and depreciation. That depreciation can be a nice benefit, even if you're cash flowing. Just make sure everyone's clear on how it works so there are no surprises come tax time.

Communicate everything, write it down, and treat it like a business from the start. That’s what keeps the partnership strong long term.