Opinion on a house hack? What are the cons?
My brother went thru a hard divorce leaving him with no assets at 47yrs old. He's a blue collar worker making about 55k in Baytown Tx. He's never bought a home so he is still eligible for an FHA. Our thought process is for me to front him all the money for a multifamily home. A fourplex is the only option for it to be financially beneficial to me. I would front the money, he would take out the FHA loan and live rent free for a year. I would collect all rents and he would just save his money allowing himself to get back on his feet. After a years time I would then charge him a minimal rent say 500-800mth. Has anyone ever done this or heard of an arrangement like that?
If he wanted to leave the home for any reason after the year could he transfer the loan to me? I’ve used my own fha loan already.