Buying from a family member for the same family member

[Jeremy Clarke]

Good Morning BP community! My mother, who lives in Powder Springs, Georgia in the Atlanta area is in need of a bit of help. She has a part time job and has struggled to get anything full time. She isn't in the best place financially and the house I grew up in, that she's owned for almost 30 years is almost upside down. I can't just "give" my mom money all of the time, she won't accept it. But I am considering purchasing her house from her and then she can pay me what she can afford every month. I have two questions. 1) Has anyone ever purchased a house and then rented to a family member, if so, has that experience been more positive or negative? 2) What are my options in terms of transferring the title / ownership of the property? I'm guessing it obviously wouldn't need to be listed on the mls... Ultimately I'm hoping I don't have to buy her house but if this ends up being the best option do my mom has a place to live, I'm certainly going to seriously consider it.

[Mindy Jensen]

@Jeremy Clarke , @Nick Watkins  brings up a good point. Are there any other siblings? Money does strange things to people. 

If you have any siblings, I would tell them what you are thinking about doing, and ask if any of them want to go in on it with you. If they do, have an attorney draw up ownership papers and contingency plans for what to do after your mother passes. Not a fun topic to think about, but if you want to keep the property and they want to sell, it's best to know now, before you go into a partnership with them.

If you go this alone, be prepared to pay 100% of everything - that way any money your mother gives you is extra, not something you're counting on to pay the bills.

It is admirable that you want to help your mother, but make sure you can afford to do so without jeopardizing your own finances.