I'm exactly sure where to post this question...so I suppose it will get posted here for now :-).
My in-laws are both retire and on fixed incomes. They have paid off their condo... but pay hefty utilities/maintenance fees. They live on different island than my wife and I (Maui vs. Oahu - HI) and want to move to Maui. We are looking to build them an extension off of our current house, but want to somehow leverage their condo to help defray the costs. Could a quitclaim deed be done for something like this?
The condo was build in the 70s and has not seen ANY upgrades since...which makes selling for any real money (market value or at least close to it) an issue as they have no money to put into it just to sell. There are a few more complications, but this is the gist of the main issue.
We can't afford to buy it off of them, repair, then rent while build them the extension to live in (for free) all at the same time while paying our mortgage. Just looking for any experience in anything like this or cost effective solutions...?
Aloha, @Bj Carvalho - how about selling the property to an investor with some owner financing to defray the cost? Is it possible to sell it with enough of a down payment to help defray your cost but leave enough 0% seller financing to make the property attractive enough to an investor? The more you can the reduce the capital cost to the investor, the closer to market value you can get. Perhaps there's a happy medium in there somewhere. If you want to talk specific numbers on the property itself, drop me a line.
@Michael Borger this is an interesting idea, but am afraid that my in-laws won't want to deal with something "non-conventional". I do have a friend going over to assess the property (he's an investor/broker as well) and will give me some numbers to consider and work from. I was hoping that the quitclaim deed process would allow us get the property cheaply then flip. We'd have our money to build, make a little money, and give some back to the in-laws at the same time.
Thanks for the information!
You could easily get market value for it - that's the value of it in whatever condition it's in at time of sale. Why not get a home equity line of credit, and use those funds for the rehab and building of the extension? You can then pay off the HELOC when you sell the condo.
@Chris Soignier , good idea...but I'm not sure the inlaws will qualify for much being on fixed incomes (Social Security), and I don't want to co-sign unless I have complete control over the money as we're pretty stretched on loans right now...as for the market value observation...I hear ya, but won't work for us since there is another personal issue that hampers that solution.
I realize that there are many creative ways to go about it, but I'd like to really hear more on quitclaim legalities before I try another strategy first as it sounds like a clean/quick way to acquire the property...at least at face value anyhow.
Then have them deed it to you, and you can get financing against it. As long as there's a decent equity value in it, you s/b able to get financing....might just have to be a bit creative.
I just don't know what requirements come along with "just deed it over" though...in the end...I may have to consult a lawyer (?).