How partnerships work?

When you form a partnership to invest in houses, how do things work out?

For instance, lets say two people split the cost of buying a house, and split the cost of fixing it up, then rent it out. Is the rent normally all put toward the mortgages? When the house is paid off, and rent is still coming in, is it just then split in half between the two partners? What happens if one partner doesnt take care of his side of the mortgage?

I have about 100 scenarios in my head about partnerships that I am unsure of…how do things normally work in a partnership?

it works exactly how the two of you decide to split things and PUT IT IN WRITNG in the partnership agreement.

It needs to address everything you said, plus:

who’s gonna do what and who’s gonna get what in compensation. Who’s gonna go when the water heater goes out at 2 am. Who’s gonna pay when the roof leaks and you have to fund the entire repair because his daughter’s getting a $40,000 wedding. What’s gonna happen when he dies and now you own a property together with his widowed wife who has remarried a mobster. What’s gonna happen when he gets divorced and his wife’s atty sends you a letter that ties up your half of the partnership in court. What’s gonna happen when you’re ready to sell because you’re fed up dealing with snotty tenants and a deadbeat partner and he doesn’t want to. What’s the exit strategy? Who’s gonna pay when it’s been vacant for a year and the house is about to go into foreclosure? When it gets foreclosed, and you can’t sell because it’s underwater, who signed the personal guarantee?

Yep, I’ve seen all this happen.

Decide in advance. PUT IT IN WRITING.

Here is a good resource for your question: