My husband and I are looking to buy a 2-flat with another friend of ours. None of us want the full responsibility of a SFH but we all dislike condo's and their rules. So a 2-flat or even 3-flat seems a great idea, a nice large unit each with free reign over the yard, common areas, etc. to do as we like. And in the case of a 3-flat, possibly cover some costs with a tenant.
Now, we were under the impression that we would be able to each have our own mortgage to this one property to avoid annoyances like only one person being able to deduct interest from their taxes and such. I think we thought this based on people having a second mortgage on one property. But now I am to understand that 1 deed means 1 mortgage.
First, is that correct? We must all three obtain one mortgage together?
Second, is it correct that the mortgage would likely be based on the lowest credit rating of the group? We are all very good but one guy is stellar.
Third, is there any feasible process that would split the property so we could have seperate mortgages? Or would that mean forming a co-op or creating even more ridiculous issues?
Fourth, is there any benefit to forming an LLC or trust? We aren't going to be buying additional properties to rent out, we just want a home that we invest in together and want the best possible mortgage.
