First Partnership

[Joseph Adelmann]

Hey BP nation,

I am working on a deal on a 3 unit multi family property with a partner. The property is listed at $40K ( I'm in a more rural part of PA) fully rented and my partner will purchase the property with cash. Then he'll create a mortgage for me for half of the value of the home at the current mortgage rate for 30 years. The property nets about $7500 per year which will be split evenly and I'll be managing the property. I'll be netting around $200/ mo. 

The property was built around 1920 but is in good shape. All tenants are on month to month leases but one will be moving out soon. Another tenant is paying $100/ mo less than the other two units and they have a cat. And unless glade came out with cat piss scented plug ins, the tenants are not tidy with their pet. The owner hasn't had issues with any of the tenants paying though. 

Our next step is to have a home inspection completed on the property. This would be my first partnership on a real estate property. I'm drawing on the collective experiences of BP nation to find out what I should look out for? What are issues others have run into with partnerships? 

I don't like the idea of tenants with pets due to the added wear and tear (personally I love pets though) but I am not eager to face 2 turn overs starting on my second real estate deal.  What is the best way to handle this?

Thanks ahead of time!!

Joe