House Hacking Partnership

[Michael Wilson]

Hey Everyone!

I'm looking for some advice here! My wife and I currently own our primary residence and are looking to get into multifamily investing. I just read the book on investing in real estate with low and no money down and my mind has been spinning, thinking about creative financing! Here is where I need some help. 

My brother is looking to get into real estate as well but doesn't have the capital to get in the game. Would it be a good idea for us to go in together on a multifamily unit and get a 203k or other FHA loan in his name and get started by splitting the 3.5% down? He would live in one side while managing the property and renting out the other unit(s). This is obviously assuming that after running the numbers, the deal we find is a good one. 

What do y'all think? Thanks!

[Christopher Phillips]

Yes. Will it be a "gift" or will you also go on the loan?

If you are going on the loan, do you currently have an FHA loan? Or conventional? There probably won't be any issues if you currently have an FHA loan since your brother will will there. But having two FHA loans would be a topic of discussion.