Creative Finance Strategy To Buy From Parents

Member since 2023 · 8 posts · 3 votes

Hello all. I am looking at options in the near future to take the house my parents currently own off their hands as they will be moving to a new state in the next couple of months. My goal is to eventually own the house and rent out the rooms. I am trying to find the best way to do this so I eventually own the property out right. It would be a house hack. Any ideas would be great, thanks!

0 Reply

29 views

5 Replies

Jump to latestLatest

Sort by

Jay HurstBusiness Member
Lender · Dallas, TX · Member since 2017 · 1k+ posts · 1k+ votes
2y
Quote from @Robert Fry:

Hello all. I am looking at options in the near future to take the house my parents currently own off their hands as they will be moving to a new state in the next couple of months. My goal is to eventually own the house and rent out the rooms. I am trying to find the best way to do this so I eventually own the property out right. It would be a house hack. Any ideas would be great, thanks!
Would they be willing to sell the property to you below market value? If so and you truly occupy the property as your primary residence they can give you a gift of equity for your down payment. That can be as low as 5% for a primary residence.

Gift of equity
Hurst Real Estate, INC4.987 Reviews
Website View Page
0 Reply
Account Closed
Investor · Scottsdale Austin Tuktoyaktuk · Member since 2021 · 4k+ posts · 4k+ votes
2y
Quote from @Robert Fry:

Hello all. I am looking at options in the near future to take the house my parents currently own off their hands as they will be moving to a new state in the next couple of months. My goal is to eventually own the house and rent out the rooms. I am trying to find the best way to do this so I eventually own the property out right. It would be a house hack. Any ideas would be great, thanks!
If they have lived there for 2 of the last 5 years, they could do Subject To, Contract for Deed, and probably get the tax exemption. Their loan would not be paid off, you would make the payments. If they don't qulaify for the exemption, probably a renewable lease option. If you inherit the property eventually, they are not taxed and you are not taxed.
0 Reply
Andrew PostellPro Member
Lender · Fort Worth, TX · Member since 2016 · 8k+ posts · 6k+ votes
2y
@Robert Fry any reason why you just couldn't buy it from them normally? Can you qualify for a traditional loan? I mean, "best" might be a little open to interpretation here but it might be "best" for them for you to just buy it from them. It might be "best" for you to buy it from them using a gift of equity. Lot's of ways to do this and would certainly recommend speaking with a loan officer on it. This is a pretty simple transaction for most good loan officers.
0 Reply
Chris SeveneyBusiness Member
Moderator
Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
2y
Quote from @Robert Fry:

Hello all. I am looking at options in the near future to take the house my parents currently own off their hands as they will be moving to a new state in the next couple of months. My goal is to eventually own the house and rent out the rooms. I am trying to find the best way to do this so I eventually own the property out right. It would be a house hack. Any ideas would be great, thanks!

Do they have a mortgage on it or own it free and clear?
7e investments53 Reviews
Website View Page
0 Reply
Robert Fry
OP
Member since 2023 · 8 posts · 3 votes
2y
Quote from @Chris Seveney:

Quote from @Robert Fry:

Hello all. I am looking at options in the near future to take the house my parents currently own off their hands as they will be moving to a new state in the next couple of months. My goal is to eventually own the house and rent out the rooms. I am trying to find the best way to do this so I eventually own the property out right. It would be a house hack. Any ideas would be great, thanks!

Do they have a mortgage on it or own it free and clear?

They do have a mortgage on the house.
0 Reply

Join the conversationCreate a free account to reply, vote on answers and follow this thread.