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Updated over 5 years ago,
Colorado Springs Unique House Hack Scenario
I have a unique scenario that I'm hoping some of the BP community either has experience with or can point me in the right direction. My friend is moving to Colorado Springs in January and would like to house hack a duplex or triplex (or possibly a SFR with roommates if the numbers make sense). However, the move and extenuating circumstances have/will put a strain on his liquidity. I'm an investor in the Sioux Falls area and would love to diversify into another state, so this seems like a prime opportunity to do so. However, we're hung up on exactly how to structure the partnership. I would provide the funds for closing, down payment, and an operating float, while he would occupy a unit and manage and maintain the property. Ideally, we would use a down payment assistance grant (or similar program i.e. first time home buyer) to purchase the property. The problem is, he would have to be the only person on the mortgage to qualify (due to income restrictions + the fact that I won't be occupying the property) so I won't have any actual ownership of the property. Additionally, I'm concerned about the tax implications if we would at some point transfer the property into an LLC we owned 50/50. Any suggestions on the following would be extremely helpful (or any comments on the scenario at large):
1) Structure of the partnership / securing my investment in the operation
2) Best realtors in the area, particularly those well-versed in first time home buyers / RE investing
3) Mortgage officers in the area who are well-versed in grant programs
4) Best locations - leaning towards east side of town as that's the location of employer
5) If you're looking to sell your property (2-4 units), feel free to message me directly
Thanks!