Investor · Detroit, MI · Member since 2014 · 360 posts · 354 votes
We are going to attempt to purchase a duplex/triplex/quad for my wife's retired parents(about 10 miles from us). They currently own a home 300 miles away. We are going this route so that way the property will have minimal cost or even cashflow on the monthly basis, while they travel to their various residences.
What loan options are available? Would this be considered an investment property? would we be required to put down 25% even though our parents occupy one of the units? could be "write-off" the lost rent while my in-laws occupy he unit(we dont charge them, but the home would be in my name)...all input is greatly appreciated,
Rental Property Investor · Mercer Island, WA · Member since 2008 · 22k+ posts · 14k+ votes
11y
Yes, for you its an investment property. If your in-laws were the ones borrowing, it would be OO, but for you, its an investment.
No, you cannot write off "lost rent". But its rent you don't collect. Your taxable income is based on actual rent collections, less actual expenses (including interest, but not principal payments) and also less depreciation.
Rental Property Investor · Lindon, UT · Member since 2015 · 862 posts · 438 votes
11y
There are conventional loan products where you can qualify to purchase a home with owner-occupied rates IF you are buying the home for your parents. Find a trusted loan officer near you and make sure they know about this Fannie Mae or Freddie Mac program first. If you can't find it, hit me up again and I'll go look for the name of it. Good luck!