All Forum Posts by: Account Closed

@Basit Siddiqi I've been planning to make an LLC for my personal portfolio and not sure how having a 50% ownership of a primary residence under LLC would even work when his portion will be outside the LLC. Or we could make one LLC just for this house between us since this would be our first partnership. Not sure which one is better than the other.

@Theresa Harris given the restriction that he can't show second income source for the duration of his visa processing, what would be an ideal solution if we do want to share cost/ownership/risk/profit in real estate market?

@Joe Norman Hi, thank you for sharing the factual data here. I need to learn more about the tax and loan processes in this scenario and BP's been really good source for me. I am trying to read articles after work. We both are software engineers. If I could directly reach out, that would be helpful for me too.

My understanding so far was, as long as one of the co-owners occupy the place, the property can be bought as primary residence and the loan and mortgage interest, downpayment requirements will follow suit. Meaning, bank won't loan it as investment property. Yes, there will be additional income but since one of the owners will be there, it's not quite a 'investment' property. And to be legally complaint, we can file the income in tax return. I've seen posts where people were addressing issues on how to file tax when house hacking.

So I guess I can't write off the mortgage interest as expense but he can? I thought since this would be a primary residence anyways, it won't count against his work as addtional income. But sounds like, no matter who has the loan, expense and income ties with ownership. So I guess I can write off my expense, income in my tax return and it's upto him what he does with his? Also that, expense don't count if it's PR. Some forums here said, y

I can count the portion tenants occupy as my expense/income..

I am gonna read up some more articles so apologies if I am making wrong statements here.

An out of state friend wants to partner with me in a SFH which I hope to occupy as primary residence for house hacking purposes for certain amount of time. He expressed interest in having his name as the loan borrower. So I don't need to have the loan under my name. We plan to split cost and ownership 50/50. Since my name won't be on the loan, I won't be able to claim tax credit, any tax deductable expenses, and can't project any rental income correct? He has a visa restriction and can't show second source of income beside his day job. Which means he can't show rental income either. But he can still get tax credit for buying a primary residence along with all the expense, no?

Is not receiving depreciation credit, tax credit for primary residence a good trade off for not having my name under the loan? I am still responsible for half the cost, just not on paper.

I don't have immediate need for getting another loan but this certainly frees me up. If anything, it won't be another house, maybe something in tech, but not anytime soon.

If there were any bank that takes two borrowers and splits the loan amount per borrower, that would've been most optimal. None of the bank I spoke to does that..

@Michael Ablan I didn't quite catch the last statement you said. I can benefit from their discount meaning, say, material cost 3k and they got it at 10% discount at 2.7k, what am I asking them to discount me on? They will still charge me 3k right?

I had to install chimney and boiler for that same property (what a lemon I bought..discussion for some other time..) and hired a contractor who provided the material. And I asked receipt from him and he gave me his own custom invoice with 8y of warranty written in that invoice. But he was very reluctant to show the original receipt. He got very pissed that I asked for one. But I did check online the model number and gave myself some comfort that what he bought is reliable. Should I ask for their original receipt?

Thank you all for all the feedback. It would have been a mess trying to provide materials separately and this warning helps!

@Scott M. @Gail K. Yeah I am rethinking this situation now :(

@David Jay

Are you saying handyman who does roofing work about 50 pecent of the time or there is a 50:50 chance i will be satisfied at their work?

@Waylon Zook so far she only brought up one contractor of her own but he does everything so not necessarily a roofing contractor.