I'm hoping you can help me with this scenario. I'm planning to purchase a single family STR with a partner and there are a few things we are hoping to achieve.

What we want to do:

-Finance using 10% down second home loan and do the same on another property in the same market within a year (our primary residences are on the other side of the country and we will personally use the property a few weeks a year)

-Ensure both parties have a claim to ownership (e.g., if one person dies, the other person needs to be able to say "hey I own part of this property")

Other assumptions:

-Down payment would be sourced 50/50, though each partner can front this themselves and be paid back at a later date (i.e., an individual partner can qualify without needing the other)

-The parties are not in any way related, simply business partners

-Both parties have excellent credit, DTI ratios, and W2 income

One may say "why not just buy it yourself and ditch the partner if you can do this on your own" but for the sake of this question let's assume partnership is a given.

An option I am researching is to have partner A solely on the loan. Partner B is not on the loan, this way partner B can secure a 10% down second home loan in the future without being denied for having a property in the same market already. Does this mean partner B should not be on the deed? If partner B is on the deed but not on the loan, will a lender still flag this as already having a property and not allow the 10% down second home loan? If partner B is not on either one, how do they ensure they have an ownership claim? Does a written agreement between both parties suffice? Should partner B be quitclaimed onto the deed at a later date? Should the property be quitclaimed into an LLC owned by both partners? If quitclaiming, do you still have the issue of not being able to secure another 10% down second home loan or a due on sale clause?

Understood that an attorney is the best source - just getting a feel for what others have done. Hopefully this stream of consciousness makes sense...thanks in advance!

San Diego, California

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