Investing with Partner / Tenant???

[Account Closed]

I have a potential partner that is also looking to buy his first home. How could I structure a deal in which he is the tenant and partner?

Some of the advantages I see:
- We wouldn't need to put 20% down for a conventional investment loan.
- I may be able to capitalize on any first-time home buyer incentives he gets.
- I would trust the tenant.
- My partner would be conveniently located for updating the property.
- There would not be a rush to flip the property.

Questions:
- Would I be able to collect any monthly income, or would I have to wait for sale of the property?
- What type of contract should I put together to protect myself?

Thanks in advance!

- Blake

[Tracy Royce]

Hi Blake tread lightly in these situations. It can work and I've done it, but the property is titled into a trust with outlining trust docs and partnership agreement. Be very explicit on your terms and agreements.

There was an article posted recently on the BP blog about partnership agreements, written by an incredibly smart author (ok ok it's my post) In any case hope this helps:

http://www.biggerpockets.com/renewsblog/2013/01/10/real-estate-partnership-agreements/