Townhouse other investment.
Purchase price: $185,000
Cash invested: $5,000
This property is occupied by my in-laws. Rather than paying to send our child to an expensive daycare, we found that it was significantly cheaper to pay for a second mortgage. My in-laws loaned us the total purchase price minus $5,000 on a 3% interest rate. Instead of their cash sitting in a savings account, they decided it would be a better investment to earn 3% on their money instead of .03% in the bank. Win/win for everyone. And they get to see their granddaughter a ton ;).
What made you interested in investing in this type of deal?
Childcare costs were too expensive. This was a great alternative.
How did you find this deal and how did you negotiate it?
We found the deal on the MLS. Retrospect, I wish we would have been more rigid on our criteria, but the birth of our baby girl was quickly approaching and we needed child care.
How did you finance this deal?
My in-laws loaned us the cash and we are paying them back on a 30/yr loan with 3% interest.
Wow, awesome idea! First time seeing a child-care hack on here, you're an innovator.
Thanks, Adam! With childcare costs hovering around $1500 (for a childcare center), I figured we could mortgage a house for much less and build equity at the same time. Win/win!
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