Partnering up for a house hack?

[Bryan Pham]

Hello BP,

I recently had a buddy of mine reach out to me about an opportunity to purchase a multifamily home in the Bay Area. It's a duplex located in the South Bay. The first unit is a 3BR, 2 BA and the 2nd unit is 2BA, 2 BA. The idea is to do an owner occupy/ fix & flip with 10% down payment with a sofi loan that has no PMI. I am a bit skeptical about structuring this deal since it involves him, his significant other and myself. Has anyone constructed a similar deal before?

[Jonathan Greene]

@Bryan Pham - my initial reaction is that you are outnumbered in the deal. Apart from the financial complications, even if you are 50-50 financial partners, they really would have two convincing votes to your one on the flip aspect. Would you both be living there while you fix & flip? For partnerships, especially with financing and renovation, you have to consider the worst-case scenario. If it hits the fan, it will always be 2 against 1.