I'm considering buying 3 duplexes with two other partners. The three of us are all good friends. The property is selling for 150,000 and one person is giving the his 50,000 as the down payment. Me and the other guy are going to finance the other 100,000. All six units are already rented out and the property generates 2200 a month. that's plenty to cover our costs and still pocket money.
Me and the guy financing the 100,000 are considering doing a home-equity loan shortly after to pay off our cars. We will still make around 400 a month profit between me and him. The third guy that gave the cash doesn't want or need any of the home equity loan so he doesn't care about that...just as long as he gets his 1/3 of the 2200. We'll be paying off our cars and pretty much be debt-free and pocketing about 200 a month. Think this a good idea for a first investment? Kinda sounds to good to be true.