I was recently told that it is illegal to buy an investment property from a family member in Maryland. I am trying to buy my son-in-laws house as an investment property. I am paying fair market value for the house. What difference does it make if I buy it or he puts it on the market for the same price and someone not related buys it? Is this true and is there any way around this?
That seems weird to me. It should be a normal real estate transaction. If you are buying it at market value with 20%, I am unsure of how that could be illegal.