I have been looking at buying my first rental property for about a year, saving for a down payment/oh fuck $$, while I analyzed the properties for sale in my area an insane amount. At this point, I am a few months away from having all of the money I need saved and making the plunge. I also have a type of property in mind and have talked to a family friend who owns several of these kinds of rentals, she is happy to advise me further (share her lease, policies, etc).
Maybe 6 months ago, I asked my dad if he wanted to go in on a property with me. I was thinking this would mean I could buy something earlier and in some ways provide some stability. He said no (he does maintenance on a low-income apartment complex as a side job and he said he has seen too many places get trashed) but now he is changing his tune. He told me today that if I find a property and will manage the tenants, he wants to invest with me.
My dad and I have an honest, if not "close" relationship (parents are divorced, mostly raised by mom) but when it comes to money he is very solid. I don't know what his assets are exactly, but he told me he would have 15k to invest and he is a hardcore saver.
I live half way across the country from him and we would choose something in my area because 1) he doesn't want to manage the tenants and 2) the rent prices in his area are way to low compared with the costs of buying (a 110k property can go for 1500/mo+ in my area vs a peak 900/mo in his area), so this means even though he would be very useful in doing maintenance, he would likely not be able to do it. He would advise me via phone regardless if he was my partner or not, but that only helps so much.
One final consideration, when my father passes away, this means that his 1/2 ownership would be split 3-ways with myself and two siblings, which would be an absolute nightmare for me, as we do not get along. Maybe I should only do this if he is willing to stipulate I get his whole 1/2 should he pass away in his will? Is that unfair to him?
So what do you think MMMers?
1) Should I buy with my dad as a partner or go it alone? I would feel a little bad saying no to him now since it was my idea to begin with.
2) If I buy with Dad, how do you suggest us to structure the ownership? (ie we are both part of an LLC, or we just keep a rental account with both names and both names on the deed/leases? etc)
3) Has anyone had successful partnerships with family members? Or horror stories to share?