Transferring Ownership of Family Owned Properties
Quick Background: I've been fairly successful in other areas of life and recently determined that moving towards passive income is the best way to achieve my financial/lifestyle goals.
- I currently have 2 SFH properties
- I have an LLC formed, but currently don't have any properties under it.
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My introduction to rental properties was started with a complicated scenario...
As many of you probably have experienced, I have an aging grandmother that lives in a smaller house in the next town over. She's lived there alone for many years, but it was starting to get to the point where moving her closer to the family would probably be for the best.
In a series of unrelated events, my sister and kids ended up moving in with her about a year ago. During this time my sister was regaining financial stability and had intentions of renting a larger home back in our town. This is what started everything...
Fast forward, I ended up buying an equitable property near my home that was large enough for my sister, kids, and grandmother. The arrangement was for my sister to pay half the rent and my grandmother to live rent free (forever) in exchange for rights to her property.
(Everything financially made sense and was reasonable for everyone considering her homes value, rental costs, etc).
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So, my first questions here on BP are related to my grandmothers house.
My name is NOT currently on my grandmothers title and because she carries a small mortgage on it, I can't 100% own it unless I buy it, correct?
Ultimately, I'd like to move the property under my name before anything happens(!) to my grandmother and to simplify, and potentially benefit, from tax deductions.
Can anyone offer advice related to this? Any areas of caution?