Updated almost 6 years ago on .
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Need some input on helping out family
So here’s the situation, my parents are financially strapped and are considering selling their home to me so I can rent it out to them for less than what they’re current mortgage payment is. I’m not so interested in buying their home or taking on a mortgage, but I do want to help them out.
Idea: Have my name added on to the title, pull out a heloc of maybe 100k (home has a good amount of equity, but they don’t qualify for a heloc), then split 90/10 between myself and my parents. They’ll get 10 to pay off any bills or assist in mortgage payments and I’ll repay the heloc in full. I'll invest the 90 on sfh and we split monthly cash flow 50/50.
What are some of the issues with this idea? Is it impossible? Is it legal? Gift tax? Triggering due on sale? Etc. Open to other ideas as well.