Who pays what what when investing in a house with a partner and one of the partners lives there until the condo is flipped? The condo is 0,000 and has a 0 association. We are putting down 20%, or 10% each.

 

  • Landlord 5:00 pm on January 26, 2012

    You invested in a condo? Good luck with that one. Of course you did not invest all that much, not much to lose.

    It is rp to the investors how they want to handle it. Since payments will not pay down principle for years I would say the one living there pays the mortgage 100% and any upgrading (waste of money in a condo) would be split 50/50 Tax deductions split 50 50

    Unless you are the one living in the condo you should refuse to do this. You will be just flushing your 15k down the toilet.

  • taco 5:00 pm on January 26, 2012

    whoever occupies the residence should pay for all the upkeep and modifications. Who ever resides there should also be making a payment close to what the house would lease for as they are living there. The other partner if this is a true investment should make a contribution to match the difference in the lease payment and the mortgage:
    Investor 1: Pays Lease $1000. actual mortgage :$800= surplus $200
    Investor 2: Pays matched surplus $200.
    Actual Mortgage Investment Payment $1200

    There are no laws on how to invest with a partner, just a whole lot of people who will tell you not to.

  • Jo 5:00 pm on January 26, 2012

    That should be an agreement between the partners. There are no "rules" for that.

    If each is putting equal amount down and expect equal amounts when sold – then everything else should be equal as well.

    If one is living there – possibly the reasonable amount of rent could be deducted from that partners share.

    However, it’s best to keep in mind that if one is living there – there is less chance of vandalism – so that might be worth something. And whoever is living there is doing so temporarily and will have to move and pay moving expenses.

    The partners should agree to all of this in advance – in writing – so there are no misunderstandings and hard feelings later.

  • Bradleyj 5:00 pm on January 26, 2012

    Agree, no hard and fast rules – but generally I would expect the person living in it to pay for all the upkeep.