Proxy house hacking then subject-to as a strategy
I am still a newbie but I love thinking of strategies for investing and creative financing/buying properties. So I want to know what you all think about this strategy and if any of you have experience doing this, please add some feedback.
What if I house-hacked but instead of me moving into the house, I got someone else to move in? Let me explain.
My wife and I don't want to move from our current house but we still want to house hack. So, what if I gave my adult son the 3.5% down payment for an FHA loan on a duplex. He would agree to move into the house and live for free on one side while we rented the other side to a tenant. After one year, he sells the house to me using a Subject-to. Then we find another house and do the same thing over again every year. This way he gets to stay for free and I still get the low FHA loan and the house without having to move. Maybe this could be done with multiple people I trust every year. What do you think?
Does this throw up any red flags? Is there a chill going down your spine of fear, or excitement? Let me know