50/50 on a house hack?

[Patrick Eddy]

Hey all! First time posting here. I had an interesting question about a first time home buyer who is looking to purchase in a pricey market (Oahu).

I have a friend here who is talking about going 50/50 with another couple to purchase a home, since the prices are ludicrous. They are looking to spend 1400 each per month against the loan + taxes + expenses (I.e. doing the math so that payments + taxes + expenses work out to be around $2800/month) which seems feasible to me, but still in the low end for houses here to be honest.

I was wondering about how you all feel about their idea? I think personally it sounds like a great way to get out of renting while building equity and potential cashflow, but the 50/50 partnership on your first house seems a little freaky since things could get sour once someone isn’t able to front their half of the bill for repairs, etc...

My wife and I are personally trying to look for a house hack that we can purchase ourselves, and are attempting to get creative by looking at condos/townhouses/dwelling units that have enough space and bathrooms to be cleanly separated (and if all else fails, have roommates) so that we might be able to cashflow here. Which is more comfortable to me than trying to partner outright like my friend, since any drama will be our own to deal with as we learn the ropes.

What do you think about their idea?

[Matthew Brill]

I wouldn't do it. That is a huge commitment to people that aren't tied to each other. It will definitely put the friendship at risk. It will be tough to keep all the expenses straight (who is responsible for repairing what). Also sounds like a huge headache when it comes to taxes and selling. It would have to be a very thought out and thorough partnership agreement.