Two Part Question Regarding Joint Ventures

[Dustin Beam]

Hello beautiful people of BP,

I have come across a duplex I think could be a very solid deal. It's in a desirable area, with good schools and low crime. It should attract quality tenants. The owner had the property appraised a couple months ago and are selling it $20k below the appraisal number, so instant equity.

Projected Numbers:

Cashflow: $500-600/month

COC Return: 15%

So I know it needs some work. The above projections are based on 20% down and another $20k for repairs. I could could cover the down payment and some of the repairs, but not all. So if I were to do it up right, I would be short some money. There are tenants on both sides, but one is moving. In theory I could keep the other in there, fix one side, and once I gained enough capital, fix the remaining side.

Is this property a prime candidate for a partner?

If you answered yes, how should I go about this? On the one hand, using friends or family could be risky because you wouldn't want business to affect the relationship negatively. On the other hand, starting a long term business relationship with someone you don't know really well has its own built in risks (you might end up hating that person).

I know partners can be great, but I personally don't actually want one if I can avoid it. But, like I always hear on hear, 1/2 of a good deal is better than 100% of no deal.