All Forum Posts by: April L Palmer

thanks Theresa. Me moving out does not give me a formula unfortunately for splitting this up still. And with my mom building a house back here it's not ideal. Part of the reason for her moving in is to be close to family because she's getting older. Thank you taking so much time to try and help. I really appreciate it. 

oh and it's a 2 bedroom 1 bath house, no basement. 

@Theresa Harris

So I think I'm still not explaining this correctly. 

My brother does not live here. Just me and my roommate. So we're not short anything on the mortgage. I pay 900, roommate pays 600, brother pays 300. My bills have doubled because I used to rent all inclusive for 450. We looked at building a 2nd onto the house but the cost of the permits put it over the cost of her building something separate. She's going to spend about 120k to build the house and she's paying the difference of property taxes so that's covered. We're not going to ask her to pay any part of the mortgage. 

We would not be able to rent this house out for 2k a month. Is that where you're getting that figure? 

The deal with the 2nd house is that she's paying for it so she won't have a mortgage payment herself. This is for her to live almost free and clear. She'll have her monthly bills and years taxes for the house. She's getting older and getting something from her for profit is not what the 2nd house is about. 

Are your calculations different based on the info about the mortgage being covered each month? 

thanks Theresa! Ok so I'm not sure I'm following this part-

mortgage, taxes,etc (ie anything not covered by a normal tenant) cost $1500 per month

-profit is $500 ($2000-1500), so $250 for you and $250 for him

So the actual mortgage is 1800 a month that's including taxes. I pay $900 and he ( my brother) pays $300 because my roommate pays $600.  Does this change your calculations? 

My brother and I bought a home as a long term investment. We initially figured about 10 years. He offered to out up all the upfront costs which ended up being a little less than 60k. The deal was I would live in the house and pay 50% of the mortgage and he comes up with the other 50% and he can move someone in to be my roommate but whatever the difference is, he pays. We hadn't worked out the details of splitting at the end or anything. I'm trying now get him to talk about numbers and percentages. He technically never agreed to pay 50% of the mortgage but he never came up with any other solutions to counter that offer. However, now that I've been thinking more about it, if I had agreed to pay $1500 which is my half of the mortgage plus the $600 he's getting from the roommate then that would make my monthly investment about 82%. The only think is I would be responsible for keeping a roommate and responsible non stop for 1500 a month which would not be the case if he was responsible for 50%  of the mortgage. I want him to get a return on his initial 60k investment and also somehow split the profit at the end. I'm not sure a nonbiased way of going about this and would like some help here. The other thing to consider is he will be paying for any major costs of the house as far as improvements such as a new roof at some point, gutters, paint etc. I don't want to factor these into the initial investment because they won't happen for a few years. So he needs a return on his initial investment and also needs to be compensated for shelling out future cash. Not sure how to make this even stevens at the end. Any advice is appreciated. Selling and figuring it out now is not an option. My mother is building a house in the back which will also add equity but not sure how much at this point so I don't think we csn factor that in yet. His argument is that I  wouldn't have the house of it wasn't for him (talking about money makes him defensive), and my argument is now I have to have a roommate (which I found after sifting through a bunch of weirdos), my bills have more than doubled, the yard maintenance is on me whether my own hours or my own money toward it, and my mother will be living 50 feet from me. These are my sacrifices. His monthly out of pocket is about 300. I can't see paying 900 a month plus having a roommate and him paying 300 a month and split this thing at the end 50/50. Another argument of his is he could have been investing the 60k plus the 300 a month and not have to wait 10-15 to see a profit. I want it to be fair and no animosity. Sorry for the novel. Thanks in advance.