Purchasing my childhood duplex
Hi,
Newbie investor here seeking to buy my first duplex which happens to be my childhood home out-of-state. We feel like we know the building after being there about 10 years -- she still lives there. Could sell for around $200K and rent for around $2,000 ($1,000 per unit). The owner has been speaking to me and my mother directly for years about selling to us and we're very excited to move forward. I live in NY, but with the unit being in my hometown, my initial plan was to purchase the duplex as an investment property (20% down). However, after getting laid off I'm unsure I'll be able to have the funds by summertime when he could be ready to sell.
So I've been considering a different route. Maybe it would be wiser for my mother to utilize an FHA loan to purchase the duplex. I can provide the deposit and closing costs. But we could work out a deal where she manages the property, I cover all maintenance costs, and receive the income from the second unit for a specified amount of time or indefinitely. But I have reasonable caution mixing business with family in the long run. Would love to hear others experiences/opinions on working on REI deals with family members.
I'm inclined to fund her purchase because it means *much* less money upfront and quicker entry into REI -- the income is an added bonus, but for my first purchase, the learning experience is my primary motive. I've also been getting opinions of speaking to the owner directly to learn more, but I'm not sure how to talk about financials, haggling, or anything else I may need to ask.
Thoughts on which route I should take to purchase? How to meet/negotiate with the owner? How to deal in business with my mother? Any feedback at all on anything would be so appreciated.
Thanks for your time, everyone.