Seeking Guidance on First Real Estate Investment Through Seller Financing

[Raul Mena]

I'm looking to purchase my first real estate investment, and I believe this is a good opportunity due to the low pending mortgage balance of $64,000 on my parents' home. Unfortunately, my parents have a high debt-to-income ratio, which is preventing them from securing a loan to buy the house. I, however, have the income and credit to qualify for financing, and i already have a primary residence. My parents are proposing that I purchase the house in cash and enter into an agreement with them in which they would repay me over the course of 13 years, effectively allowing them to regain ownership once the loan is paid off. I believe this may fall under the concept of seller financing, though I'm not entirely sure. I've never done anything like this before and am seeking information about the process, including how to work with a title company to establish myself as the legal owner, how to access the home's equity, and how this might impact my taxes since I don't own an LLC. I'm also trying to understand the potential risks or outliers I should be aware of. I'm new to real estate investing and recognize that some of my ideas might be misaligned or contradictory due to my lack of experience. I'm looking for guidance and mentorship, as I believe this could be a strong opportunity for a BRRRR strategy if structured correctly.