Hi everyone - my husband and I are Denver based and are purchasing an investment property in the Tampa area with our friend. Our friend will be living in the house as his primary residence and we are splitting all costs/mortgage/profits 50/50 with him.
The friend will be moving into the property, while rent from the other rooms/unit is expected to cover the mortgage, expenses and reserves so we essentially breakeven while he's living there. As a result, he has $0 in housing expenses and will be living rent free. However, my husband and I are out of state and the property needs some renovations and he'll be mostly managing those and acting as the property manager since he lives there and we don't. Has anyone had a similar setup and/or ideas on how to ensure he's fairly compensated for the extra work? Or would people consider the difference between what he's paying ($0) and market rent fair compensation in this scenario? He had a friend in real estate say that we should be paying a 10% property management fee on top of the rent benefit. I just want to make sure we're being fair so looking for objective third party opinions and am curious if anyone else has operated in a similar situation. Thanks!!
