To get a partner or to not get a partner. That is my question

[Jacob Lapp]

What’s up everybody! The title says it all.

I am currently on my second househack living for free and cashflowing $1700 a month.

Based on my current plan and strategy I’ve had in place househacking more expensive multi-family properties I have 2 or 3 more years/deals until I hit my cash flow goal.

I am still working my W-2 and my savings has significantly increased with the extra cash flow, still living extremely frugal.

My initial plan to buy a property each year at first seemed super reasonable because that’s the time I thought was necessary to save for down payments. With the extra income it is happening much faster and I want to take advantage of some deals I am coming across.

The money maker and key to the excellent COC I have been getting has been through house hacking.

I am conflicted whether or not I should buy as an investment just because I am able to buy and sacrifice the COC I've been getting from househacking.

What’s holding me back is the “claiming residency for a year” and I know a lot of people say “ who’s gonna check” or “you don’t need to wait that long it’s just a suggestion so that you actually move in and don’t immediately rent it out”. I guess it’s a moral dilemma and I am scared to get caught up breaking the rules.

My other option and purpose of the post is I’ve been approached by a few cash heavy partners who don’t want the work involved but want to use their money to have equity in the deal.

I’ve talked to my CPA and attorney and have ironed out good partnership agreements. It really came back to the underlying question. Do I want a partner? My initial answer is no. But I have a hard time passing up more passive income that will let me achieve my goals quicker.

I’m curious if anyone else has been in a similar position and if so what advice would you have told yourself when you originally had these thoughts?

Thanks in advance!

[Nicole Heasley Beitenman]

So your long-term goal is to build a buy-and-hold portfolio? I see no downsides to a well-structured partnership. Do your due diligence on potential partners and make sure your contracts with them are rock-solid. You'll probably have to focus on MF's because the cash flow isn't high enough on SF's for two people to split unless you buy all the properties in cash.