Buying a Rental Property with my brother

[Thomas Webb]

Hello all,

I am looking to purchase my first buy & hold investment property to provide sustained rental income. I plan to purchase the property with my brother. He will actually live in the property for at least the first year along with a few of his friends. After a year or two, he will move out and we will find other tenants.

My questions are related to structuring the deal and financing the deal. From what I have gathered from various resources, it sounds like we should purchase the property as Tenants in Common. We would both be named on the purchase & sale agreement, and we would both be named on the mortgage.  That way, we could take advantage of being an owner-occupant and only put down 10%.  Does anyone have any recommendations for otherwise? Or are there any further concessions that will be needed, like a will that places each other as the guarantor? 

Any lessons learned for investing with family?

I appreciate your help and advice!

Tommy