Baton Rouge, LA · Member since 2016 · 7 posts · 1 vote
I was wondering if anyone has figured out a strategy to buy their parent's/family members house and make it beneficial for both.
For example, my dad's house is paid off and market value is approximately $135,000. He wants to buy a $200,000 house in a different part of town. His current house would rent for $1,200-1,350.
Example 2: My mom's house is valued at $150,000 and she has approximately $60-70,000 remaining on her loan. She also would like to move to a different part of town for around $215,000. My mom's house would rent for $1,350-$1,550.
My plan would be to somehow purchase both (if beneficial to them as well) and rent out.
I appreciate the help and suggestions. By the way, I'm a newbie.
New City, NY · Member since 2016 · 47 posts · 7 votes
10y
There are a few more things you need to consider. What are property taxes on both of the properties?
Do you have money for a downpayment?
For your father's house, see if he would be willing to finance the loan. You can give him a downpayment (which he can use towards the purchase of his new place). If you put 20% down, and finance the rest at 5% for 15 years, your monthly payment to your father is $854.06. At the end of 15 years, you will have paid your father $180,730. (20% down + interest + principal)
That's just one option.
As for your mother, maybe you could do a similar thing, though I don't know the best way to structure it while she has a mortgage already. There are plenty of people on here way smarter who know better.
why are you focusing on their homes? DO your parents need the equity to put down on another purchase? That is an important question to discuss with them
Investor · West Monroe, LA · Member since 2015 · 34 posts · 7 votes
10y
I found myself in a similar situation but instead of buying a home I will inherit down the road they let me manage it for them and give them the extra income with a little kickback to me. Why buy something you will eventually own free and clear in 10-20-30 years. Just another way to look at it. Ultimately do what's beneficial to both parties.