Looking for ideas on how to put this one together:
We have an accepted offer on the house next door $196k. My wife and I want to move into it. We own our home ($250k with $100k equity)
My daughter wants to move into our home. She owns her home (180k with 90k equity) and wants to turn it into a rental.
Daughter cannot qualify for a $250k loan to buy our home but can qualify for a 196k loan to buy the one next door.
One possibility: Daughter buys the house next door and we live in it and she lives in ours. She then uses the income from her rental to pay the loan on the house we are living in. While we continue to make payments on our current home. Is there an "owner occupy" problem here? How about income tax problems?
Is there a better way to put this deal together?
Can you discount your place to her for 196k? Do you have to have all that equity? or can she afford to pay the mortgage and then give you a little more towards the equity you are losing? I am thinking you can gift her part of the purchase. Will the rental house pay for itself? or make money? if it will only pay for itself then why bother keeping it? sell it and use that money for the purchase of your house.
Thanks for taking the time to offer a couple of real good possibilities. My daughter's mortgage payment is $728/mo. PITI We should be able to rent it for $1300/mo.