Gilbertsville, PA · Member since 2017 · 2 posts · 0 votes
I am new to BP, and I maybe jumping in the deep end here. However, my relative has offered me to purchase a vacation home that has been in our family for 3 generations. For the sake of giving some context on numbers, the home purchase price would be $200k and the appraised value is approx $300k. I would like to purchase the home in cash using a payment plan over 5 years. Would any of you have any advice or suggestions?
@Scott Kenna What do you mean by paying in cash but using a payment plan? Is your relative going to owner finance you? I guess I'm confused. Either way, paying back 200k in 5 years means you'll have to pay 40k a year in just principal. I'm guessing you know this, but it's not an inconsequential number. Are you going to VRBO or AirBNB this place to cover some of the cost? While the equity you'll have is great, those payments will be hefty. I think we just need more detail to really offer any valid suggestions.