San Jose, CA · Member since 2017 · 4 posts · 1 vote
The situation:
-My parents are divorcing and want to sell their 3bd 2ba home but still owe $470k on it. According to zillow, it's worth around $535k, someone has offered them $550k
-I would like my mom to be able to still live in the home, so I was considering trying to pay my step-dad off so he can move out
Should I:
-Try to buy the house from them for what they owe the bank ($470k) and give my step-dad his share in cash?
-Is there a way to put the property under my name/share the title with my mom instead of "buying" it?
-Try to turn it into a duplex, each unit would be a 2bd 2ba?
Is your tax bracket higher than your Mom's? If so would make more sense for you to take advantage of tax breaks as owner and lease or rent it back to your Mom. Paying off your step-dad and having him move out seems a good idea. Not sure why you would convert to a duplex unless it's too much house for your Mom by herself. For a shared title need to decide whether joint tenants or tenants in common - get legal advice.