A Future Plan : A Vacation Home to Share for the future

So, I have this dream that I want to spend many weekends upstate near Woodstock and contemplated buying a home but can't afford it..(having a home I'm trying to pay for already). I love it there, the peace and beauty of the nature soothes my soul as it does for many people. I came up with this idea. Tell me what you think. Sounds crazy, but how about partnering with someone or ones and come up with half the down payment and split the mortgage and expenses. Of course there are lots of details but that's the basic idea. A reasonable house that just feels like it fits in nature....maybe this isn't a crazy idea after all ...maybe you might of thought of it. Would love to hear from kindred spirits and we can talk.

Mixing up your finances like that with another person you know well is usually not a good idea. Doing it with someone you don't know at all is probably a recipe for all kinds of headache.

If I wanted this Id probably buy it and line up the other person as a renter, not take out a mortgage and try to split property ownership with another person.

I guess your right...I'm just trying to find a way this could work.

aroundtheblock said:
I guess your right...I'm just trying to find a way this could work.

Rent a house?

Or wait for the market to cool (it will happen) and buy a house then rent it out for something near break-even.

The market is hot right now. Do you think winter is a better time?

I have a house in Vermont that I have alternately rented out at a reduced rate with the understanding that tenants have to get out when I want to use it, or a straight sublet until summer when I'm up more frequently. I benefit from having someone taking care of the house when things are more likely to go wrong, and carrying the cost of the utilities.

aroundtheblock said:
The market is hot right now. Do you think winter is a better time?

If I knew that, I wouldn't tell you.

And the world would quickly become a dangerous place. Like the alternate reality 1985 from BTTF 2 when Biff is the richest guy in America.

Where do you find dependable people to sub-let? Is there a site?

You could buy the house with someone, but set it up as a business. You both put in a set amount of money into an account where mortgage, ulitiltes, etc payments are withdrawn. You set up the amount of weeks you would each like to be there, set the process for determining who gets first pick or however you'd like to do it, and have ecerything set out in writing. You could even rent it out the times either of you are not there. You just need a lawyer to set up an llc and go over all the parameters with you. Would be a few hundred to set up, but once it's done, you have that paperwork as the structure, so there should be very little problems...

(I have done this with my inlaws and have had no problems, knock wood

Lukeysboat, sounds wonderful...glad to hear something positive about my crazy idea. Tell me more about your specific situation. You could PM me. I'm very interested.

Some relative's did that same legal arrangement to share a vehicle purchase in Manhattan. Seemed to work for for them.

I have seen this kind of situation end badly. What happens if one partner needs to sell?

Well good to hear both sides of the coin. It seems like there is a trust issue at hand. One must put faith in the idea for the long term. It seems to me an investor could come at a time when he or she will be ready for retirement in a couple of years like in my case. I am looking for an investor in this idea. I am reaching out and maybe someone will respond who wants the same thing as me at this time.

In theory, it's a sound idea. In practice, it would take a lot of work. Even if you want an even share, you should have a contract spelling everything out. I don't want to discourage you from it at all. I would hope you could work it out. My wife bought a house in High Falls in 2012. That's Ulster County where Woodstock is. She was looking to buy a shared property with a friend of hers, but the idea sank when they realized they wanted different things in a house. For example, the friend insisted that the property have some kind of water running through it such as a brook.

I think the suggestion to own it fully and then rent it out to recuperate some of your money might be best. It's a standard transactions, and lawyers and accountants can walk you through it. Sharing a property with someone who is not family is nonstandard, so you have to make it up as you go along. Then something happens you didn't expect, and the rules are unclear.

Thanks Tom for the advice. I realize a stranger is not the best idea and renting it out seems like the best option. At this point, I am talking to my brother to see if he's interested as he is my only family besides my kids. The problem arises when he has different ideas than mine like you said. Would you have someone rent it out for most of the year except the summer and a lawyer could write this in. Do you think someone will want to make a commitment knowing they have to leave at a certain time when you want it? I wouldn't. Are there other options?

Hm- if the partnership idea doesn't work, maybe consider buying then doing short term rentals via vrbo/ airbnb or something similar? That way you can accept rentals for when u do not want to be there? You can set minimum stay times, and although it may not be used year round, you could get some income when not in use by you to offset some costs. You should see what type of homes are most desired as rentals in the area you are looking at, and what type of rents they are asking, and see if that is in line with what you were looking to do. Good luck! (Also, keep in mind you would most likely need to declare that income and pay taxes, etc

My friends just bought a place up there and their vrbo rentals cover 80% of the mortgage.

Also know that managing rentals at a distance can be a real pain. What happens if a pipe bursts? Or the renters damage things?

If your situation suddenly changed, such as a health problem, do you have someone who could take over the work with managing your rentals?

Why not simply be a reliable renter for someone else?