Evaluating a Partnership

[Brian Gallagher]

I am currently evaluating a duplex purchase in the Cleveland area. I feel pretty confident in my evaluation of the property, and think it would be a good candidate for BRRRR: Purchase Price: $130k Rehab Cost:$47k ARV: $225k Monthly Rental Income:$2400 I am currently planning on buying the property with a conventional mortgage and financing the rehab myself. After completion of the rehab, I would not have any cash outside of emergency reserves. After a year of holding the property I would refinance, collect around 40-50k, and buy another one. Over the past month, I have had a friend approach me about going in with me on a property. I have not yet put a proposal together, because frankly I’m not sure what a proposal that would be beneficial to both of us would look like. I would manage/perform all of the rehab, along with managing the tenants. If I am able to do the work with my own cash, am I gaining anything with a partnership, or am I better off doing the deal on my own?