Which is better? Asking close willing and wealthy family member for down payment help vs. asking them to buy property for cash and become the bank?
I am planning to invest in my first house hack property. I have about $150k cash and looking to invest in Texas (Houston/Dallas) or Bay Area. I am planning to buy a business and/or go to grad school as well but also want to house hack so I am looking to borrow from family. I'm not sure if it is worth it to borrow from family to save on closing costs or for other reasons or to just buy the property myself. Can I generate enough cash flow to pay for grad school in full every quarter/semester (medical school or business school) if I house hack? I basically want to live and pay for graduate school for free if possible with 150k invested in real estate but I don't know if that is possible right now in either Texas or California.
What would you do if you had a close wealthy family member who verbally said yes to helping you buy the whole property for cash and be the bank? I am 25 y/o college graduate and may pursue grad school as well.
@Bryan Tasumi congratulations of thinking of doing house hack, I would ask him to be the private lender, after you show him you pay on time you can do more deals with his money, but be fair and have a lawyer to take care of the legal documents
If you're getting assistance from someone else for the down payment, the lender will be all over that.
When I bought my first home (many, many years ago), my parents gave me some help for the down payment. The lender wanted to know exactly where the down payment was coming from. And they made my parents sign an affidavit that the money was a "gift" and not a loan, and that they did not expect me to pay them back.
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