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Hirare · 04-12-2006, 03:17 PM

I'm not sure if this is a question for you or not, but here goes.

I'm looking a buying a house with my sister. Something around 250K that is in a good neighborhood and is a bit of a fixer upper. We both have 25k to put down as the 20% downpayment.

Here's where it gets complicated, she is living out of state and is only planning on investing money in the house to make a profit out of it. I on the other hand will be living in the house and probably doing the majority of the remodeling on it. We are trying to figure out a fair way for us both to pay a portion of the mortgage so that when we sell the house 3 or so year the profit is split 50/50.

It was suggested to me that since I was living in the house I would pay whatever the fair market value for rent on the house was plus 50% of the difference between the the rent and the mortgage paymen and she would pay the other 50%. i.e. If the house would rent for $900 and our morgage payment was $1300, I would pay $1100 and she would pay $200.

All remodeling would be split 50/50 and any work I did would be given an hourly wage that would be deducted from the cost of supplies.

I hope that's clear enough. Like I said at the beginning, I'm not sure if you'd be able to help or have heard of anything like this, but any input would be much appreciated.

04-12-2006, 03:17 PM	#40 (permalink)
Hirare Upright	I'm not sure if this is a question for you or not, but here goes. I'm looking a buying a house with my sister. Something around 250K that is in a good neighborhood and is a bit of a fixer upper. We both have 25k to put down as the 20% downpayment. Here's where it gets complicated, she is living out of state and is only planning on investing money in the house to make a profit out of it. I on the other hand will be living in the house and probably doing the majority of the remodeling on it. We are trying to figure out a fair way for us both to pay a portion of the mortgage so that when we sell the house 3 or so year the profit is split 50/50. It was suggested to me that since I was living in the house I would pay whatever the fair market value for rent on the house was plus 50% of the difference between the the rent and the mortgage paymen and she would pay the other 50%. i.e. If the house would rent for $900 and our morgage payment was $1300, I would pay $1100 and she would pay $200. All remodeling would be split 50/50 and any work I did would be given an hourly wage that would be deducted from the cost of supplies. I hope that's clear enough. Like I said at the beginning, I'm not sure if you'd be able to help or have heard of anything like this, but any input would be much appreciated.