Taking Over My Mom's Second Home

[David Weintraub]

Been a while since I posted.

My mother has a second home in Florida.  Technically, it's her primary home as she spends 183 days a year, but she now wants to be in the Northeast all year round, as she no longer wants to spend any time in Florida.

The house is in a country club.  It's a 4 bed, 3.5 bath, on a golf course.  A fully rehabbed property in the development would probably sell for $1.4mm.  The house would need about $225k to do a gut rehab.  It could sell right now for approximately $900,000+.   My parents bought the house in 1999 for $268,000.  

The annual costs on this house are about $50,000, when you include the Taxes, insurance, HOAs and Club Dues.  

The house would bring in approximately $120,000 a year in rental income. 

So now I'm trying to work out a deal with my mother for me to "buy" this house from her.  Considering the interest rates aren't great, and potentially won't be getting better, I'm looking for a creative way to do this with her.

She doesn't need the money right now as she's not poor, but she would want something.  

My goal is to rent this thing out for 10-11 months of the year, and use it for the month of December.  And then eventually either sell it, or move there in about 7-10 years. 

I want my mother to recognize the benefit of not having to pay a higher amount in taxes per the sale, not paying seller costs to RE agent, etc. etc. etc.

Thank you all in advance.