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So my friend has some money for a downpayment. So do I, but each one of us, individually, don't
have enough to give downpayment for a 2 family house, so he was toying with the idea of buying together a 2 family house and legally split it between his family and mine.
Is this possible? and if so, would it be a good idea to do this?
I have a great relationship with him and his family, but I'm afraid that this might bring some trouble
down the road.
what do you guys think about this?
by the way, we're looking at 2 family houses around Maimodenes hospital in Brooklyn.
Not sure, if and how this is done the legal way, but what's the plan when one of you (in the worst case scenario) loses his job and can't make mortgage payments?
This seems like a good receipie for disaster, or at least one that might end your friendship.
Be careful.
It can be done but like everyone else, I suggest NOT doing it. We have friends who jointly purchased a multi-dwelling home. Long story short, it started to get ugly when it came to getting things fixed and guys having to put up some extra money for renovations or upkeeping. Some wanted to be the "investors" only and wanted no part of going up to the house to check things, etc. They ended up buying one guy out but ultimately they sold the house. These were guys that knew each other their whole lives. It wasn't worth ruining the lifelong friendships. Friends and money rarely mix well.
OP, the intention sounds great but it's what can happen down the road that can ruin everything. Also, I'm not sure how the tax filing would work. It sounds like it would be a joint venture (like a business transaction) for both of you to put up the financing but I can be wrong.
You'd have to set up a condominium or co-operative. Tough with two because the votes might often wind up a 1-1 tie.
Why not combine your downpayments and have ONE of you buy while granting the other a long leasehold with favorable terms and rights of renewal dependant on how much the "tenant" kicked in. Perhaps tenant could get the contractual right of first refusal in the the even the "owner" wants to sell.
Perhaps owner could have the right to terminate the leasehold with payment of a stipulated sum...like the amount the tenant kicked in with interest?
Lots of workarounds.
But we all know the old saw about good fences making good neighbors. So probably the best idea is forget the plan.
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