View Single Post
Old 04-12-2006, 08:12 PM   #41 (permalink)
NoSoup
Non-Rookie
 
NoSoup's Avatar
 
Location: Green Bay, WI
Quote:
Originally Posted by Hirare
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.
It seems like you have a pretty straightforward plan. Keep in mind, however, that there will also be taxes due on the property.

However, a word of caution. Regardless of your relationship with your sister, have everything in writing, up front - including your hourly wages and what a fair market rental price would be. I would definately have something signed with her before you consider purchasing a property...
__________________
I have an aura of reliability and good judgement.

Just in case you were wondering...
NoSoup is offline  
 

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 144 145 146 147 148 149 150 151 152 153 154 155 156 157 158 159 160 161 162 163 164 165 166 167 168 169 170 171 172 173 174 175 176 177 178 179 180 181 182 183 184 185 186 187 188 189 190 191 192 193 194 195 196 197 198 199 200 201 202 203 204 205 206 207 208 209 210 211 212 213 214 215 216 217 218 219 220 221 222 223 224 225 226 227 228 229 230 231 232 233 234 235 236 237 238 239 240 241 242 243 244 245 246 247 248 249 250 251 252 253 254 255 256 257 258 259 260 261 262 263 264 265 266 267 268 269 270 271 272 273 274 275 276 277 278 279 280 281 282 283 284 285 286 287 288 289 290 291 292 293 294 295 296 297 298 299 300 301 302 303 304 305 306 307 308 309 310 311 312 313 314 315 316 317 318 319 320 321 322 323 324 325 326 327 328 329 330 331 332 333 334 335 336 337 338 339 340 341 342 343 344 345 346 347 348 349 350 351 352 353 354 355 356 357 358 359 360