OT - A few weekend home real estate questions

[Seinfeld]

Long story short... we've got a house in Starkville that we're looking to partially buy into, but I know it well, and my gut tells me that it's in need of some serious work. Roof leaks, new windows, and possibly foundation repair to name a few. I'm very accustomed to the usual pre-ownership inspection process, but this is a case where I feel like we may need several specialized inspectors to go through this property before we even think about paying a dime.

1) For an older home like this that's in obvious need of work, any recommendations in the Starkville area for a thorough home inspection, foundation, and roof review?

2) Have any of y'all ever dealt with co-ownership of a secondary property like this? In addition to this home, we've got our eye on a few other possibilities in Arkansas and the downtown Memphis area, and while the thought of splitting bills sounds great, I'm trying to think about possible pitfalls. In a way, it seems kinda like going into business with a good friend which has always scared the crap out of me.

 

[thatsbaseball]

To be honest an STD sounds like more fun than what you're getting into **

 

[Dawgbite]

I’ve co owned two properties with two different people. One was a remodel and a flip so it was short lived. I still own the other. It can get complicated, you need to be able to compromise and so does your partner. You need some simple ground rules in writing even if just written on a notepad and signed by both parties. Divorce can really complicate things, are you financially prepared to buy out the other half or sell at any time? Lay out extended family members use rules up front, if it’s not for personal use and just rental property, it’s no different than any other partnership.

 

[aTotal360]

I was going to say the same thing. With supply issues and labor shortages, renos seem to take 3x longer than you think and cost 2x more. And it's not like you are buying it for pennies on the dollar either. All my investor clients have transitioned to buy and hold instead of BRRRR.

 

[PooPopsBaldHead]

I had a business with one of my best friends. We became mortal enemies until we sold the business. I'm a do it right and do it once type person and he is duct tape, bailing wire, and let it ride. I convinced myself before we bought the business that we would compliment each other well, that was not the case at all.

Think about that dynamic with your potential partner. I could see a lot of arguments on how to make repairs and upgrades on an old investment property.


FYI, what kind of foundation on the potential property? Crawlspace or slab? Big difference in the repair costs and success rate. Once you put a pier on a slab foundation, it will eventually lead to the entire foundation needing to be piered in most cases.

 

[Smoked Toag]

I don’t do partnerships and I don’t buy real estate when the market is high. So I think you’re making 2 mistakes. JMHO.

 

[trob115]

First Choice Home Inpectors has done lots for us. Paul Picard does a great job. I don't have any hesitations recommending him.

 

[SwampDawg]

I was in co-ownership with some relatives on a boat. Didn't work well. Everybody had different ideas regarding repairs and updates.