I am having a difficult time making a decision and I would love some input.
I am 24 and house hacking a 4-unit property. My plan is to fill all of the units and move out in 1-2 years to maximize cash flow.
My mom has been living in the basement of a friends house for over 3 years and she is ready to move out but the problem is she only makes just above minimum wage so she cannot afford to live on her own...
Initially I bought this property to make money but I am now finding it can be a huge help to her...
What do I do in this situation?
My cash flow would surely hurt but I would be making my mom happy :)
Cash Flow w/out Mom: ~$1,400/month
Cash Flow w/ Mom ~$600/month
I would hate to put this decision into numbers but it's an investment so I am torn.
You go now and look for a affordable studio size apartment for your mom and see what's out there for her. You could co-sign a apartment for her as an option. The $800 a month difference is $9600 a year. I don't see her living there as an option that makes sense. mom or not..
Your mom should look into other sources that can help someone on limited income.. don't put yourself in a position where you feel guilty or trapped to help her out.. if she can stay where she's at then encourage her to do so.
Your best position in my opinion is to offer support in a manner where you can guide her to some place where she will find housing in her budget..and only Co-sign for her if absolutely necessary and I would limit the co-sign obligation to a 6 month lease.
You need not be torn when you have alternative solutions.
Find your mother an affordable place to live. She will not be a burden on you and she will not feel she owes you anything if she can be self sufficient. Never allow guilt to cloud your business decisions.
There is no reason she can not be independent, millions on minimum wage do it all the time.
Why not put your mom in your unit, but be clear that it will be with her as a tenant, and have her pay rent.
If you want to be generous, make it a blow market rent. You still get more cash flow, you give your mother a place to live at a good rate, AND, you get to be close to your mother (if you want that).
Free eBook from BiggerPockets!
Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!
- Actionable advice for getting started,
- Discover the 10 Most Lucrative Real Estate Niches,
- Learn how to get started with or without money,
- Explore Real-Life Strategies for Building Wealth,
- And a LOT more.
Sign up below to download the eBook for FREE today!
We hate spam just as much as you
Join the Largest Real Estate Investing Community
Basic membership is free, forever.