Newbie looking for guidance with existing rental

[Darryl Gill]

Hi BP community,

First I wanted to say, 'Hi' to the community.  I've been listening to podcasts and been learning a lot.  Yes, I want to have a few real estate investments, but first I have a scenario I hope someone can guide me.

My parents have a rental home which they have invested in for me.  I've since moved out and have purchased my own home four years ago, which is awesome.  My parents have told me that I am not able to take over the property yet because the house is in a trust with my parents and my name on it.  The title of the house is in their names, not mine.  Thus I can't do anything with it yet.  They are still managing the house.  I have not seen any documents yet.  I have had a small conversation with them about taking over the house but nothing serious.  Since, listening to podcasts.  I want to make it more serious and what to be prepared with what we can do to move forward.  I believe everything is paid off.

What I am looking for is guidance to see what steps or resource I can look up about taking over the property.  

Appreciate your guidance and if there are other questions I should be asking, please let me know.

Thanks

Darryl

[Elisa Uribe]

@Darryl Gill if you would be purchasing the house from the trust to get the house before your parents pass, what's the point? Why not use the cash you have and just invest in a property, let your parents keep the house and the income they are getting from the rent to live off of.  How much money do you think you need? Do you have cash set aside to start investing? And if so, how much?

It would be pretty difficult to buy something in C.V. in this market, rent it and have it cash flow. Where are you thinking of buying?

When you inherit the house from your parents after they pass, you will still get their property tax basis which based on when they bought it would be very low taxes and a huge benefit to waiting. 

What you could talk to them about it making sure the trust says it would be in your name and not your sisters. It's "iffy" but if it's not in your name alone, I have been told by a local attorney that Alameda County can ask you to prove the house was meant for one person only and if it was in a trust and meant for more than one party to the trust, they could change the tax rate.  You could mention this to your parents and ask them to call their attorney to verify while they are both healthy, wealthy and wise;) All the best to you!