Re: I think we're crazy
I foresee this as a nightmare waiting to happen. Too many things, from time to money are unknown. The only up side to this is that you're not buying a fixer to live in and upgrade at the same time. You had better have an incredibly strong relationship with your partner to take something like this on, as the stress and workload is going to push you to the limits.
One very real issue here is that the house is vacant and dilapidated. If you purchase the property, the municipality may require immediate demolition or repair, which means that unless you've got incredibly deep pockets, you won't be able to develop the second portion of the property first.
How do you intend to partner with your partner over this deal? If you share the financial burden and work together, who is making the primary decisions? If this deal is in one person's name only, what is the compensation to the other during and after the construction? These are details that MUST be laid out and agreed to by both parties, put into writing, and have it notarized, this way if there are problems down the road and a division of the property is necessary, you're both covered.
Like I said, a nightmare waiting to happen, but doable if you can get all the parameters in line.
I suffer from CDO ... Its like OCD, but in alphabetical order, LIKE IT SHOULD BE!!!