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Updated almost 3 years ago,
Partnering with a first time home buyer, is it a good idea?
I am a new investor and looking to buy my first investment property. I already own a personal home which I took the cash out to start my investment journey. A friend of mine came to me, and ask if I want to partner with him. He has been wanting to buy his first home to live in. My initial though was this is probably not going to work out well. If he is living in it, then who will be paying the mortgage in full and then some to cover the repairs and maintenance?
But then I thought maybe if we buy a duplex. Then he can live on one unit. We can have a renter living on the other unit? We split the acquisition cost. The renter pays for the mortgage. I have heard people doing house hack like this. They basically have the renter pay for their monthly mortgage. Will this work? Can I rent a single unit in a duplex high enough to cover the entire mortgage? Will an fha loan allow this kind of partnership (I’m not a first time home buyer)? Will an fha allow you to buy a duplex?