House hack for grandma
Hello,
First time posting on the BP forums. First off Thank you all for your insight and knowledge!
I've been doing research for the past few months. Im going to take the house hack route. I thought of an interesting proposition. My grandma lives in a dump and is retired. She wants to move but doesn't want the duties of owning a house and being a landlord. If she got an FHA occupancy loan, but I funded the down payment would this be a smart idea?
Find a low cost duplex around $200k, rent out one side and have my grandma and sister rent out the other side for cheap(sister and grandma live together). Say the mortgage is $1,100 dollars, I rent out one side for $900 and my grandmothers side for 500. Really rough estimates but I would Cash flow $300 barring any maintenance cost and vacancy’s.
Seems like a win win, because I would essentially own a property (grandma would pass it down to me), my grandma would get out of the dump she lives in and pay way less rent. On top of the I wouldn't have a FHA loan under my name and I could buy a duplex for myself and try and cash flow it.
My grandma has good credit. I have more then enough for a 5% down payment and unexpected expenses.
Like I said this is a really rough brainstorm, But I would appreciate any input. Thank you all !