Newbie needs advice (Is there a better way). Time sensitive!
Hello BP, I will try to be short and concise. I currently reside in a townhome with approximately 200k equity! 1st Lien Heloc of 300K
Goals: To acquire as much rental cash flow/assets as possible in the next 5 years prior to retirement for supplemental income, and purchase a new primary residence.
Deal #1: My mother owns an investment property that is currently tenant occupied thru June 2022 @2K/mo. She is wanting to sell/gift/IDEAS???, to me for about 50k under ACV because she needs cash quickly and she owns the property outright. Rental income with a traditional 30yr fixed shows about 440 NOI/mo with the equity I'm basically buying. Now obviously this is a no brainer, it is family, and I would do another 1st lien heloc on it so the NOI could be more. My question here is taxes, capital gains, etc. Is there a better way of helping my mom/and I out without a bill of sale (quick claim deed?) or IDK? Should I treat this as any other purchase? But now the second and third part to come.
Now remember I am retiring in a couple of years! Not an option!
Currently reside in 3/3.5 townhome as stated above. Rental comps for these are 3-3.5k/mo of which I owe less than 100K.
New primary residence I want to purchase $675K. 2.5 acres 3/2 with barn and 4 horse stalls (possible rental as well).
So #2 question: Financing? Does anyone have better ideas on how to get all 3 objectives done and payoff the investment properties within the allotted 5-7 years.
Thank you for any advice on this matter. Incidentally my wife is a RE agent so that helps too!
Jeff Poe