Buying & Selling Real Estate
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback
Updated over 6 years ago,
Structuring Deal When One Partner is Living In the Property
Working on a Duplex deal with myself and a partner. I am considering living in one side of the Duplex for a year, which is the minimum required to get a residential loan. I'd like the residential loan so we can come in with a lower down payment, and lower interest rate is a plus as well. I will also be the one managing the property.
Since I am occupying one side for a year, how would you all recommend we structure the first year of the deal in terms of how we both cover expenses/claim cashflow? Do I pay full rent to our partnership so that the investment remains the same on paper as if I wasn't living in it? Do I give my partner some form of credit in later years? Do we just bite the bullet and not cashflow in year 1? Should I ask for a little extra equity?
What have you all done in this situation?