What are the pros and cons for buying a 2 family house with another family member?
sunflower asked:
My sister and I each own our own places and she has asked me to buy a 2 family home with her as an investment. The house needs some work but it is in a nice neighborhood near a train station and stores. Would you do it? Should we start a corporation before we buy it? What are the pros and cons? We can claim a lot of expenses we have with the house on our taxes? Thanks
Kansieo.com
My sister and I each own our own places and she has asked me to buy a 2 family home with her as an investment. The house needs some work but it is in a nice neighborhood near a train station and stores. Would you do it? Should we start a corporation before we buy it? What are the pros and cons? We can claim a lot of expenses we have with the house on our taxes? Thanks
Kansieo.com
beachlover:
well i would look at your own expenses first this can bee a good time to get into investment properties.
i dont think you need to incorperate but you may want to ask an accountant about that to make sure you are doing what is best come tax time for both of you.
as far as purchasing the property with her make sure both of you have plenty of income to cover it if the other runs into trouble and make sure you both are on deed and the mortgage. if you are planning to sell the house fix it up and wait a while to sell or rent it till you are ready to sell and the market starts to rebound
August 17, 2008, 6:54 amElizabeth:
Well, it is a good idea since you are family… a two family home would be good for family parties too. The bad part is if one family has a party it may be a little loud (teenagers) but i think it is a great idea
August 18, 2008, 7:46 pmP J:
I would never buy anything with a relative. Way to many complications involving the entire family taking sides in the end when it falls apart.
Now if you are going to do it go to a Lawyer and go over the plan and ask how to creat a contract between you where every thing is decided before you even make an offer as to how things will work when the deal goes sour between you.
August 18, 2008, 9:15 pmThe Scorpion:
I wouldn’t do that with a family member, you’re just asking for problems. Don’t mix family and business/investment. It would be one thing if you two were brought up in a family owned business and worked it and knew eachother in that way, but to jump into this out of the blue, so to speak, well…it’s sort of in the same vein as buying a car from a friend, it’s risky for the relationship AND for the enterprise.
August 20, 2008, 8:32 am