Buying home for my father.

[Tim Burk]

Hey all new to the Forum. I just started in single family real estate investing with a couple small houses.

The next i want to purchase is a small 1 bedroom condo for my father.

I have some questions about this as far as the best way to purchase this.

I am more than likely paying cash and if anything i will only make him pay me what the taxes and association fee costs. Is it best to collect and actual rent from him or is there any tax breaks as far as me not taking anything from him and helping him out in hard times?

Also, is there a way to make the taxes homestead if i dont actually charge him a rent or what is the best way to handle the taxes? just as an investment property?

Thanks for any info!

Tim

[Cheryl C.]

We bought a place for my in-laws yrs ago in Florida. We charge the lowest fair market we can get away with as far as satisfying the IRS. We then "gift them" the rent amount. You just have to remember to exchange the checks. I send them the "gift" and wait for it to clear and they mail me the "rent". We have a lease and do annual renewals.