House Hack 50/50 with a Partner

[Graham Lowe]

Hi - I am considering doing a 50/50 split for a house hack. I hive in a VHCOL area and even with an FHA I would need additional capital to purchase a multifamily. A friend and former colleague of mine is also very interested in this idea, and we are considering doing a joint house hack. We would each contribute 50% of the down payment, any renovations, other costs. We would also try to divvy up the management / labor evenly.

There are a lot of 3-unit houses around on the MLS. I've run the numbers on a few which look like they would work with 2 units covering PITI. The other costs and reserves for maintenance, vacancy, etc. we would cover with remaining savings and income as we wouldn't be paying rent. The idea is basically just to get a toe-in-the water and start building experience and equity, ideally leading to more down the road.

Does anyone have any pointers in dealing with the dynamics around partnership agreements, whether we could even get an FHA loan together, other considerations? We both have high incomes so it's really just the upfront costs that are the issue. Or is it all too much hassle and I should just wait a couple of years until I can do it on my own

Thanks