Ok I'll try and make this short.., my mother wants to gift her 2 family home to me. It's mortgage free but taxes are about $9k a year. I have 3 brothers but neither are in the position to take this on. The house needs about 40k in work and in a high rental area. 

What is the best way to find rehab money for this property and are there any tax implications by her wanting to gift the house to me. Is it possible to borrow money from a hard money lender?  Any advice will be appreciated. 

Hey, I'm not really sure about tax implication, but can you just get a home equity at a good interest rate.

step one, get a real-estate lawyer involved. you may not want to get it 'gifted', but find other creative ways to take ownership. - add your name to the title, set up a trust, create an LLC?

i'm assuming you live in jersey. goto google and search for this "new jersey gift a house" check out the first few articles. issues to consider when gifting a house

once you have the house under control:

if it were me, i'd do a full analysis on the property:

what i mean by that is:

• determine the equity as you may want to refinance and use the money from this to fix up the property
• find the comps in the area in order to know 
  • the ARV
  • how much to rehab the property 
  • or if you should tear it down and build something different 
• identify creative rental options if you have to do a complete rehab
  • configure it to rent per room if near a college
  • configure to rent to businesses if zones allow it
  • add extra rooms or open walls.

with all this stated i'm sure there is a potential for an emotional attachment to the building. It may be the best idea to sell it and do a 1031 exchange for a property that you can get better returns.

Thoughts?

B

Hi, here's my 2 cents: assuming you have 2 years of good income tax returns and a good credit score you should have a relatively easy time at a bank refinancing the house to get cash out for rehabbing. 

I'm not a lawyer or a tax accountant but off the top of my head I think your mother would have to file a gift tax return indicating how much was gifted to you. 

 Having said that, run that by a real estate lawyer & your accountant before making any decisions. 

Why not have your mother sell it to you for $1

Then your name would be on the deed and perform a cash-out-refinance strategy.   You can then refinance the property (roll in closing cost), use the equity gained to rehab the property and use the remaining equity for your next investment or only cash-out the amount needed.

As echoed contact a lawyer and/or mortgage broker.

this is why I love BP. The advice is priceless and thanks to all of you for the options. @W.Alex Benitez I think this is the route that maybe our best option. Thanks 

@W. Alex Benitez that was my original thought, but they've change laws over the years and that could create the same issues as gifting a property. the main one being you would still be taxxes on the appraisal value of the property. 

check out this post from a bunch of attorneys - https://www.avvo.com/legal-answers/selling-a-house...