Mother-In-Laws Condo: Gift or Purchase

[Sherwin Kim]

Hey All,

Happy Holidays and New Year!

I am reaching out because I have a multi-part question with some caveats.  I think the Bigger Pockets Community is the best to reach out and find the right answers. I like to write in outline format because I believe it is easier to respond to and clearly outlines everything I want to portray.

Background:

• My wife and I live in a condo in Los Angeles owned by my mother-in-law
  • • My mother-in-law is willing to gift us the property
  • • My mother-in-law wants around $100k and to go in together on a rental property near Palm Springs
  • • My mother-in-law still owes $170k on the condo we live in and has about $390k in equity on this place
  • • My wife does not want to leave the condo to start acquiring properties, because my mother-in-law will sell it

• I want to start investing in real estate
  • • I want to own the property we currently live in, to show lenders that I have an asset that makes me reliable to loan money to

• Title Agents/Lenders
  • • Want us to purchase the home from my mother-in-law
  • • Want us to purchase the home between $300-400k or do a cash-out refinance at around the same amount
  • • Have evaded a discussion around a gift

Questions to Bigger Pockets:

1. 1.  How does she gift the property, where my name and my wife's are on the title/deed to the condo?
2. 2.  I don't mind taking over the loan, but I would prefer to keep the loan amount relatively the same in the event any challenges 
3.      were to come up with my first investment as I am just starting this journey. Is that the right way to think about this?
4. 3.  Is there a better way to acquire this property other than a gift?