Real estate partners

[partnersincrime_IHB]

I recently found this forum and saw one person here who had purchased a condo near SC Plaza for investment purposes (buy and then rent out). I am interested in doing something similar but with a friend of mine in the future when home prices decline.



Now, assume that both of our names are on the deed, how will mortgage interest tax deductions work and will it count as a first home for both of us?



TIA.

 

[awgee_IHB]

Each partner is allowed the mortgage interest deduction to the extent that they paid the interest. Example: John and Mary are equal partners and John pays for all the down payment and Mary pays all the mortgage payments. Mary will get 100% of the allowable mortgage interest deduction.


First time buyers for what qualification or purpose. If borrowing from 401k, no. You have to intend to reside in the property.

 

[partnersincrime_IHB]

Thanks for the reply. Apparently, a lot of money can be made, but condo HOA fees are the killer making profits (if any) far less than would be without HOA fees.