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Updated about 8 years ago,
Managing my dad's property as a landlord?
Hi, I am in the beginning stages of the real estate business here in Arizona, and my dad has expressed his desire to help me get started. So far we have talked about the idea of him buying a house with 100% of his own money (no mortgage), and then he would let me function as the landlord. So while the house would remain in his name, I would be the one responsible for pretty much all the expenses, but I'd also be able to receive 100% of the tenants' rent checks. So basically my dad has offered to give me a massively big piece of the pie without a whole lot of risk on my end.
The main downside is that neither my dad nor I have any real estate investing experience, so I'm a little concerned that I will make a huge mistake right off the bat. For example, I'm wondering if there would be any significant legal/tax ramifications about the idea of the rent checks going to me directly despite not being the homeowner. Would it help at all if we started up an LLC and/or partnership? Or can my dad and I accomplish what we're trying to do without taking this step?
Again, I'm brand new to this whole business, so anyway you can help point me in the right direction would be greatly appreciated. Thanks a bunch!