If your parents aren't retired, why would you need to hold a mortgage for them? I think you are on the right track in your last sentence- why not buy a house and rent it to them. Of course, there are all kinds of family dynamics to take in to account, but that is a risk only you can assess.
Hi @Jonathan Vandal ,
Cashflow positive rental properties help your debt to income ratio, they do not hurt it. They do increase the reserve requirements, of course. Path forward might to be to handcuff your parents to ONLY properties that will cashflow as a rental, and have them pay fair market rent.
Hey @Jonathan Vandal , are you confident that they have the means and fortitude to pay you rent if you were to rent to them? Doing it because you care about them and want to help is great, but if you can't afford both mortgages at the same time it could be a problem financially and personally.
Originally posted by @Jonathan Vandal :
So it seems I can't have my cake and eat it too. They want to own the place, not rent. I want to make that happen while still being able to purchase another deal in the future. So it seems one or the other has to be sacrificed.
If they really do have FICOs in the 500-550 range, there are still options out there for them, but the rates/terms will be ugly.
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