I am new to the BP family and love the way everyone interacts with one another. Hope someone can help me with this one. while talking with my parents they informed me they were thinking of selling their triplex. They have a mortgage of 325,000 and the units are worth 750,000. Is there a way where I can get the mortgage loan for the pay-off amount and create a separate contract with my parents for the rest of the money without getting taxed? Anxious to hear from you guys.
There are a few option when buying or inheriting family owned real estate. First it you will be using it as a primary residence living one of the units you could do a Gift of Equity Purchase. That will save a lot of out of pocket funds or cash needed for down payment or closing costs. If it is an investment property they can sell it to you for what is owed and you can always work out a family agreement after the sale for "other" funds. Once you own the property you can always take out a HELOC or some cash and pay them as well.
Thank you Jason,
We will talk it over tomorrow and will definitely keep you posted.