Partnering with the existing Homeowner...?

[Brian Johnson]

I have the opportunity to partner with an existing homeowner in a college town to rent his property out. Let me explain... He currently lives at the property as his primary residence, but he will be moving to a home closer to work. His house is in prime rental area and is adjacent to a property I own already. Purchasing the property isn't an option. He has a home equity line of credit on the home that maxes out its equity. So if it's worth $200,000, the home equity line of credit, along with his mortgage, bringing the total amount owed to right up around $200,000.

I was thinking that I would bring in a certain amount of money for repairs to bring the home to rental ready condition and to have cash on hand for a safety net. I will be managing the property also.

My questions are,

- how would you structure a deal like this?

- what do I need to know

- how do I protect myself.

- how much should I charge fro running the property.

- are my expectations realistic