Grandmas House in Mountain View CA Quitclaim Deed then Refi?
We are entertaining the idea of purchasing my fiancee's grandmother's home in Mountain View, CA. This house is in a PRIME location, walking distance to google. COMPS are going for 1.2-1.4 mil ARV. We want to present the best proposition to both parties, she is our grandmother of course.
Currently:
-The Mountain View house is being rented to family.
-We are renting a room from her in the San Jose home she lives in. Her Mountain View home is being rented by family, but we would switch places upon taking ownership.
-The Mountain View house is paid off.
-There is a mortgage on the San Jose house.
Her Wants:
-Keep the property within the family rather than sell it, but would ultimately sell it if her kids don't want to purchase the house (let's assume none can purchase).
-Avoid capital gains taxes as much as possible.
Our Wants:
-House hack- either renting rooms, renting the house, AirBnB, Build an ADU - The more privacy the better
-Find a price that works. We are thinking in the range of 600-700k. Her capital gains would literally be over 200k in taxes should she sell it on the market other wise.
-Build equity to leverage for future investments
Are there any legal ramifications if she Quitclaim/Quickclaim Deeds us into the property, and we cash out Refi money and essentially use that to buy her out? Are there Pros and Cons to this and is there a better way to do this?