Updated over 6 years ago on . Most recent reply
Investment property for parent - showing record of revenue
Hello! New to BP, closing on my first investment property on a couple weeks. The property is something I am purchasing for my mother, she had been paying rent and I saw this as an opportunity to get my first investment property. I am able to get a conventional mortgage since the house is for my mother and the money she gives me for "rent" will not be considered revenue by the IRS since a parent can "gift" money to a child.
However, I want this property to be the first of multiple. Looking to the future, I know that I cannot claim "rent" as revenue to a lender unless I have collected it for at least two years. Will there be a conflict showing the money given to me monthly by my mother as income in the eyes of a lender?
This may not even be something I have to factor if I can BRRRR the next investment but I would also want a hard money lender to see this house as an asset.