Hello everybody! Long time reader but first time poster. I've learned so much from all of you, so thanks in advance!
I just came across a Homepath property that I'm very interested in. It is 6 units, all 1 bedroom or studios. Based on pictures and driving by it looks more or less rentable right now. Some of the units are 100% ready to go, others would need paint and cosmetic fixes. Obviously there can be a lot of other problems hiding, I wouldn't know until inspection though. It needs a new roof, but even factoring that in, the numbers seem to work (assuming it isn't already leaking all over the upper floors!).
So here's the question: there are still 8 days in the First Look lock-up period. Based on my current living situation, I probably couldn't move into it. But I probably could find a friend who would be happy to live there a year or two in exchange for a rent discount. My idea is to buy the property (probably cash), put both our names on the deed, have the partner move in for the required time, then QC the deed back to me alone. Somewhere in there I would do a cash-out refi in my name alone.
What are your thoughts on this idea? Have you ever heard of it being done? Does Homepath allow two unrelated people to both be on the deed? Any feedback would be appreciated!
I wouldn't put the friend's name on the deed unless they are investing in the property with you.
My parents almost did that a couple years ago to my brother. They found a really nice house but it was still in the OO stage. They were going to have him buy it and move in for a few years. They were planning on having it as part of his inheritance anyway so it didn't matter whose name was on the deed in the end. They would just do it as a long no interest loan to him.
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