Skip to content
×
PRO
Pro Members Get Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
$0
TODAY
$69.00/month when billed monthly.
$32.50/month when billed annually.
7 day free trial. Cancel anytime
Already a Pro Member? Sign in here

Join Over 3 Million Real Estate Investors

Create a free BiggerPockets account to comment, participate, and connect with over 3 million real estate investors.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
The community here is like my own little personal real estate army that I can depend upon to help me through ANY problems I come across.
Buying & Selling Real Estate
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
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,

Account Closed
  • Rental Property Investor
  • Austin
13
Votes |
8
Posts

Structuring Deal When One Partner is Living In the Property

Account Closed
  • Rental Property Investor
  • Austin
Posted

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?

Loading replies...