Buying and leasing out rental properties is a tried and true method of accumulating long term wealth with someone else making the mortgage payments for you. Plus, you get a bit of extra income each month as well.

Not a bad deal, is it? Can you buying with partnersthink of any other investment that allows you to buy real property, secured with a mortgage and come out on the positive side of cash flow each and every month? How much you make each month depends on the difference between the mortgage payment and expenses compared with the market rent for the area.

The larger the property the more expensive it will be but at the same time, the more rent you can charge. And does the prospect of a 5.00 percent annual increase on a $300,000 home seem more attractive than on a $75,000 property? Maybe you want to buy bigger, but can’t quite afford it, especially if this is your first investment. Why not consider taking on a partner?

When buying with a partner, a bank combines your income, your assets and each individual credit profile. With two incomes you can qualify for more home, and work your way up to bigger, more profitable investments. Banks evaluate multiple borrowers on a single home in a similar fashion as a married couple. In fact, there’s no difference at all other than how the buyers assume title.

The bank will determine affordability of the new mortgage by considering the current income and debt load of all buyers on the application. With regard to credit, the bank will use the lowest middle credit score for qualifying purposes.

Couples that are married typically hold title as “joint tenants” which means they each own the property equally and should one spouse die, the surviving spouse is the automatic heir to the asset. Those who purchase a property together that are not legally married, most often take title as “tenants in common” which means that should one of the owners die, ownership is transferred to the deceased owner’s heirs and not to the other owners on title.

When buying with others, you need to be clear on the implications and speak with your financial planner as well as your attorney. But if you want to start buying bigger than your pocketbook can currently afford, you may want to find some like-minded partners to join you on your journey.