Buy and Rent partnerships?

[John C.]

Hi again BP! Thanks for all your advice.

I have done one buy and Rent investment. So far, its working out excellent! And I have plans to do more, but have recently been approached by a similar investor who would like to partner up. Tell me what your thoughts are if this is wise or not in general.

We find a property that will make about a 30% profit after costs every month. I put my money down. I hold everything in the deal and the partner signs together on the Title. We pay all expenses out of a single account and input all rents. We split that 50/50 at the end of each year (or buy more) until we decide to sell. I take all profit or loss of sale at that time. Any needed repairs etc comes from that same account.

Is this good enough for a beginner such as myself? The Condo will easily rent because of our location, I just feel a little greedy because it seems like Im taking all the risk and all the partner has to do is manage it? Im actually not even sure HOW much risk I am taking, but I know it will rent well, and I do actually trust the partner, he has many years under his belt doing this on his own.

Thoughts?
(Thanks!)