Financing new condo

2 Replies

I am in process of buying a condo to help my kid who is unable to afford rent about 2000 per month and she would need for 4 years . She would  able to pay half  of rent. Condo is about 250,000 . My plan was put 20 percent down and take out mortgage . Lender wants to label it as a investment property. I may sell or rent it after 4 years . 

I am in position to pay off with cash with some help from home equity line of credit  or pay off totally with cash and use home equity line of credit for any emergency cash needs for a year to replenish my reserves 

Need advice to make better decision 

I am not in rental or real estate business . But , it could be start

@Ashok Jain

BP is full of useful resources such as forums and blogs. Welcome to the Bigger Pockets community-be sure to check out all the awesome BP blogs under “Learn.”

Welcome to BiggerPockets.  

You will find on many blogs and forums that the vast majority of people in the know would highly recommend that you do not get involved with renting to friends or family. It always stresses relationships and seldom makes you money.  

If you are interested in getting into the real estate game, do it on more relaxed terms. It doesn't turn out well for those who are getting pushed into it for some reason, whether it be for a family member or for one's own financial conundrum.  Get your first investment property after doing plenty of study and analyzing properties for cash flow, or appreciation, or after repair value, or whatever you are looking for depending upon which side of Real estate you're interested in. 

Don't buy a property in a hurry in order to help someone in a desperate situation, or you are only going to take that desperate situation and put it on yourself. 

Perhaps there's some other way to help.

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