My question

7 Replies

My mother in law wants to sell me the house I used to live in with her daughter, my deceased wife. Market value is around 170K loan payoff is 110K. My problem is I recently took on a large mortgage and do not qualify for another mortgage with this lender at my income level. My intention is to turn this into my first rental property. And my question is what would be the next step?

Any thoughts would be greatly appreciated. Thank yoou in advance.

Hi Portugal,

First, I'm sorry for your loss of your spouse.  I'm by no means an expert, but I wonder if you could assume the mortgage and rent the property out.  Good luck!

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you don't even need to step into a bank. how much does she want down? Do a wrap with as little as down possible as long as rent covers debt and expenses. Or do a long term sandwich lease with an option to buy in the future and collect the spread along the way.

I appreciate your replies. Her payments are too high. She has refused to refinance. The end result being there would be no net income based on current rents in area.

Troy she wants me to have the property at no profit to her. I am certain I need to understand your advice. I am willing to learn but I really don't know what all that means. Thank you both again.

why is she unwilling to refinance? These creative strategies only make sense if you can be cash flow positive. otherwise she should just sell the property and give you $60k. you can still do a long-term sandwich lease with an option as long as you're willing to break even every month and then buy the property down the road when it has even more equity in it.

Troy she is 82 years old and no longer wants it out of her name. 

Gotcha. Best bet may be to sell and take the proceeds and go find a better rental property.

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