Structuring a Real Estate Partnership with Family Members

This chapter explores various ways to structure a real estate partnership with family members, discussing the distribution of tax benefits, appreciation, and cash flow. It also emphasizes the importance of self-managing rental properties for tax benefits and provides advice on negotiating fair deals with partners.

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DON’T sell your low-cash flow rental property just yet—you could make it a cash cow with one quick strategy switch. At least that’s Rob Abasolo’s advice as he joins David this Sunday for a Seeing Greene episode, where they take questions directly from BiggerPockets listeners, commenters, and reviewers! And even if you don’t have your first rental in the bag, this episode will be worth tuning into.

David and Rob discuss whether buying your first property with a fixed vs. adjustable-rate mortgage (ARM) makes more sense with today’s high interest rates. Then, we hear from an investor looking to sell their rentals and move that money into a bigger city with more appreciation potential. The problem? Their rentals are making some serious cash flow. Speaking of cash flow, we hear from an investor who’s got a townhouse that COULD become a rental but would have some meager returns. Is it worth keeping? Tune in to hear answers to all those questions and more!

Want to ask David a question? If so, submit your question here so David can answer it on the next episode of Seeing Greene. Hop on the BiggerPockets forums and ask other investors their take, or follow David on Instagram to see when he’s going live so you can hop on a live Q&A and get your question answered on the spot!

In This Episode We Cover:

How to turn your low-cash flow rental into a passive income machine

Partnering with family members on a rental and how to split the profits

Fixed-rate mortgages vs. adjustable-rate mortgages (ARMs) and whether the low rate is worth the risk

When to trade your stable, cash-flowing rentals for long-term appreciation in a better market

Why lenders DON’T want you to downgrade to a cheaper primary residence (and how to get around it)

And So Much More!

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