Firstly, I would like to thank FT and Canadian Capitalist for creating this forum. I absolutely LOVE it, I also really like MDJ FT. And CC, I promise I will check your site out when I get a chance. I hope I am posting this topic in the right forum. I apologize in advance if it isn't. (I have a feeling its not).
Here is my current situation. I am 22 years old and I live in Ontario. I have been working full time since I graduated highschool in June of 2005. My friend and I purchased our first townhouse November of 2005 for 130k. The balance is now at 116k. It has 4 bedrooms and 2 bathrooms.
June 30th of 2008, we purchased a second townhouse near the University for 197k. The remaining balance on that is 192k. It has 4 bedrooms and 3 bathrooms. And could easily use a facelift...or TLC.
There are two sides to every story. I am giving you my side. Obviously it will be biased. But to make a long story short and minus all the emotion and drama, I will get to the point. I started dating this girl Late 2007, moved in with her Early Spring 2008. Due to my conservative and frugal nature. I found it made the most sense financially to move back into my 130k townhouse with my then girlfriend and my 'friend' and other tenant. After a few months of living at the 130k townhouse, my then girlfriend and I broke up. Less than a month later...surprise surprise my 'friend' whom I own both properties 50/50 with starts dating her. They moved out November of 2008. He works in the automotive sector and has been getting part time hours and recently was temporarily laid off for at least two or three weeks. Without much warning, I was informed that he was moving back into the 130k townhome. I know I could veto my ex girlfriend from moving back in, but it wouldn't really solve much. Especially considering that I cannot and will not live with either of them.
So, I have kind of been ousted from my home and am going to be moving into the 193k townhome. Which currently has two students in it and we will be needing to rent out the 4th bedroom at that place. (I know some of you will laugh. Some of you will shake your head knowing this would be a train wreck from the get go. And some will say, "forgive and forget").
I don't perceive myself as a hardliner or anything like that. But when it comes to situations like these, I really don't think it is appropriate to date your best friends ex-girlfriend. The biggest insult for me was how the entire thing escalated. I found it extremely degrading and damaging to see the two of them start dating and screwing around while we all still lived under the same roof. It almost seemed to me as if they were flaunting it for fun. At this juncture, my friend...lets just call him a business associate aren't exactly on the best of terms. And in the long run, I can't really see this turning out very well. By no means are we at each others throats, I haven't even bothered to engage in a shouting match or anything like that. I just know, I can't stand either of them at this point.
So my question is this, What do I do? What would you do if you were in my shoes? Do I continue renting out rooms, I live at one residence and he at the other? And see how that works out? Is it worth keeping the townhouses long term as investment properties for financial security later on? Is a buy out in order? Or should we sell? I am really leaning towards selling at this point. But again, I don't know for sure, it was more of a sporadic decision. And I really don't like making rash decisions without really thinking things through.
Also, because there is not that much equity built up, what would be the tax implications? I know I should not take any of your advice as sound financial judgement without consulting a professional etc. I got the disclaimers and the like. Great lesson to learn, Don't do business with your friends or family. Or mix personal and business.
Again, I apologize if this is in the wrong forum, and I apologize for it turning into a really long soap opera. I am just really frazzled and...stumped right now. Which doesn't happen very often for me. Usually I am very focused and I am able to come to a decision rather quickly, but not this time round.
Thank you for taking the time to read, and I appreciate any constructive feedback you may have.
The Happy Wanderer