Investment Property or 2nd Home

3 Replies

i have a friend who owns a condo outright. She's on a $500 a month fixed income. property taxes are $3600 per year and HOA's are $300 per month. She's offered to deed me the house valued at $280,000 if i make the HOA payments, pay the property taxes, and allow her to live there rent free. she's 68 years old. Will this be considered an investment property? What are my tax benefits? If it isn't considered an investment property in this scenario what do i need to do for it to be considered an investment and show the losses for my tax benefit?

what are your benefits here? what are the comps? is she upside down, behind on payments? what's the current market value? does it need work(major or minor)? you need the answers to these questions before you decide to go forth on this. if the numbers don't make good sense then you don't make dollars. my coin.

Kudos,

Mary 

The benefit is that i would own the home. There is no mortgage or loan balance. The current homeowner is willing to give me or deed me the property if i make her HOA payments and property taxes. The house will appraise at around $280,000.

please someone help me?

Thank You in adavance!

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