It's the mind control disseminated by the profiteers of hyperconsumerism that make the narrative sound strange to people.Thanks for sharing.

They own one or two houses, owe nothing, and figure they've made a profit if they bring in more than their taxes and insurance costs.

My husband and I are wanting to get a multi-family and are thinking a great way to get my brother involved is the following: My brother would get an FHA loan for a triplex or 4-plex in FloridaI would put the 3.5% down payment as a co-borrowerMy brother and his fiancé would live in one of the units for a few years rent free so they can save money for a houseMy brother would manage the property by showing units, cleaning them when someone moves out, and as much maintenance as he can handle on his ownI would handle the finances paying the mortgage using the cash flow and keep the profits since my brother is living rent freeMy brother would move out eventually (2 or 3 years later) and we would refinance into a regular mortgage so that he can get another FHA loanWe would begin splitting all profits 50/50 once he moves outMy question is, has anyone reading this done this before?

The specific deals I have seen are usually with a preferred return (7-8%) and a split on profits (60/40 or 70/30 in favor of investor).

You should definitely read Wheelbarrow Profits by Jake and Gino.

I have sold warranties at appliance stores and I can assure you warranties are pure profit.

Do I calculate it at current market value and say the $14,500 profit from the sale would be the cash down?

If so and it is profitable why sell?

@Ann N.If the payment they got paid off their loan or gave them a nice profit they may want to defer some of the taxes over time and prefer the cash flow thus taking the second.

The BRRRR is not 100%, and does take time to learn and make profit.