All Forum Posts by: Peter Carboni

Hey Prashant, following from Nashville! I'm curious about your lots and how you financed. Best of luck with the builds.

Collin, this is super helpful. I'm considering a small cabin to use as a STR. I will keep all of this in mind.

Hi Jason, this post seemed to find me at the perfect moment. I’m considering purchasing a condo in Provincetown, but as I’m almost always away at sea (work as a singer on cruise ships) I would rely heavily on a property management company. Sending you a connection request now. Looking forward to connecting and quite happy to have found this post. :)

Hi Cheng. Did you ever pull the trigger on a rental property in Provincetown? Would love to hear your experience. I’m hoping to do something similar and would rely completely on a fantastic property management company. 

Hi Yann, I’m a newbie from Wareham. I was considering househacking in New Bedford earlier this year but have been priced out. I recently took a new job with a significant pay raise so I feel a bit more confident. However, I work on a cruise ship so I’m not around for physical meet ups any time soon (will be home in June) but it would be great to meet other investors interested in New Bedford. 

@Nathan Gesner Woah, thank you so much, Nathan! When you break everything down like that using even fictional numbers I can see just how much I'd be screwing myself over. My initial thought was to just pay the 10% for a PM as I'd be out to sea. It's seeming like a great idea still. I mentioned this in response to another comment, but I think I'll do it all myself and offer her discounted rent in my unit in exchange for being the liaison between myself and the property manager.

Otherwise, I'd be out at sea, and my unit would be vacant, which just feels wrong since the point of house hacking is to obtain a free or low-cost place to live.

Something else I'm considering is using a different financing option. With the FHA loan, I would have to live there- I think for a year. If I use something else, I will pay a higher down payment, but I would be able to fill all of the units, hire a property manager, and continue my life as normal.

Again, I really appreciate your thoughts. Thank you!

@David M. Hey David, 

Thank you for such a thorough response. We had planned on forming an LLC, but I wasn't aware that I couldn't use the FHA loan in that situation. That right there is reason enough to call it quits.

I think what I'm going to do is house hack it, hire a trusted professional property manager, and offer her the discounted rent in exchange for being the liaison with the property manager.

I appreciate how you noted the difference between equity and job functions. Since she isn't putting down any capital, I see now how I'd be screwing myself over in the long run.

I'll certainly shoot you a message, so thank you for that offer!

Hey all, this is all very helpful. Thank you- this is my first time doing anything like this, so I have no idea what is fair or not. I really appreciate the insights 

Hey all, 

I'm about to pull the trigger, with a partner (my best friend) on a house hack (fourplex) in a city near me in Massachusetts. I'm in an interesting position (i work on a cruise ship) and I'd love some insight on how to structure the partnership. 

Since I work on a ship, my partner on the deal is planning on living in the unit (don’t worry, it will still be my primary residence, no fraud here!) and taking on the role of property manager/full-time landlord in exchange for a stake in the property’s equity.

To be clear, I am the one putting down the capital to purchase the deal and she is the one who will be living in the owner-occupied unit for most months out of the year as landlord and property manager.

One last detail is that the properties we are looking at just fall short of cash flow positive since we are only putting 3.5% down. So she will have a cheap place to stay (well below market rent) and equity in the deal in exchange for her work as PM and LL. She could even take on a roommate for our unit and turn the property cash flow positive.

So my questions are:

1) What’s the fair equity split in this scenario? How much equity would you share with this partner if you were in my position?

2) Do you have any stories, experience, or resources you could point me to on how to structure such a partnership?

I would be so grateful to hear any advice you have on setting up sound partnerships so that everything is clear and laid out from the beginning and everyone feels compensated.

Any of your insight would be sincerely appreciated!

@Nicholas D. Thank you for your response. All of that is great to hear. I appreciate what you mentioned about making mistakes. I'm certainly expecting to make plenty- haha. 

In searching the MLS, It's difficult to find a triplex that will cover the entire mortgage, especially when I'm only putting down 3.5% as opposed to the traditional 20%. I'm wondering if a fourplex would be too much to take on as a first-time investor. What do you think? Also, I'm certainly going to use a property manager- and I'd really appreciate any recommendations you might have.