BRRRR and partnership

[Karee Awls]

So my partner and I both hold title to the property an we've decided to implement the BRRRR strategy. Originally it was a cash deal at $48,000, home now appraises at $95,000 an we're now going to rent it out for $1200.00 a month but hope to get 75% equity from the refinance. My question is should my partner and I still split the equity and flip the rest or do I eat it an just pay myself from the month residue payments from the monthly rent?

I think my partner wants to put her money back in the bank ($48,000) and flip the remaining equity but then I've worked for free and will get paid in the long haul with monthly rents and future BRRRR's.

[Naveen Kumar]

You did not work for free - look at it this way - now that you have put the sweat equity in and proved yourself that you can make it work, you will be confident to go out there and attract more investors possibly. The investor on the other hand, got handsome returns, but has no one else like you to go to. It is a winner situation for you.

And you should respect the fact that you would not be in this position if the investor had not put the money on your abilities. So, I would suggest to cash her 48k out, and then let the remaining equity sit in the property, and both of you split the proceeds after paying the expenses.