My brother and I are buying a home for 415k. The Downpayments are uneven; I pay $28,500 (68%) and he pays $16500 (32%). It seems fair to split profits when we sell the house proportionally to this but we are struggling to figure out the rental scenario.
We will be renting the home for extra income but I will live in one of the rooms and he lives in a different city.
Is it fair that the rent I pay will go towards a mortgage that I will benefit more from?
Say the mortgage is 1600, and I can rent 2 rooms out for 1000 each and live in the basement. So as to not live for free I would pay rent of 1/3 of the mortgage ($533) and I would act as the property manager.
The total amount of profit for the home is $2533(rents)- $1600(mortgage) is $933 per month. I'm happy to split this evenly with my brother despite uneven downpayments ((is splitting based on downpayments fair?)) but his worry is that I still have an extra advantage on the property because the rent I pay will partially go against the principal of the house - so I'm basically paying myself.
How much rent should I pay if this is correct, to make sure we both profit from this house monthly and when we sell? We both want to be fair and will bring it to a lawyer when we're both happy.