My inlaws currently own a condo that they live in. They want to sell and move to a retirement community and said they would sell the condo to us for 90k. The condos in that area are selling for 115k to 130k. My wife is already on the deed because it was once her condo before we were married. They said they would sell to us at a discount as "gift" to help us build up our investment property portfolio. They said they would rather give it to us for 90k then use a realtor and list it for market value.
Using the rental calculator on BP i came up with a 16 percent cash on cash ROI with a 10 percent down payment.
What would be the best strategy for getting this property into just mine and my wife's name, without my inlaws. They have no mortgage on the condo so they could potentially quit claim it to us but then I would have to cash out refi it to get them the 90k.
Not sure the best strategy to obtain this property. Any suggestions? Any loop holes? Or an I basically looking at a straight up purchase from them to me?
I think i failed to mention that they have no mortgage on the property, it's entirely paid off. They even said they would let us secure a tenet in there before we owed then the 90 grand. This would reduce the risk of having to pay a mortgage payment with no income coming in.
If they will owner finance.... You just have a lawyer draw up a mortgage that you mutually agree to... and file it. cost you a grand or so. DO THIS. No handshakes... This is family. Protect your relationship. If they will owner finance and give you a sweet deal with sweet terms... you are already in a nice spot. Remember you have to spend xmas with these people...!
They won't do owner financing because they need the 90k chunk to buy their new retirement home. That's what they need at the least. They said if we don't the condo they will list at market value (around 130k).
Maybe they could Quit Claim the home into an LLC I create and then refi?