My parents own a home that has a 30 year mortgage. It’s been about 15 years since they bought the property. They pay about 1400 a month for the mortgage. The house would need a lot of repairs if they ever wanted to sell it. Now I’m looking to get into real estate investing so I thought to myself can I brrrr this house?? Is it possible to put the house up for sale below market value but within the neighborhood price point. Then I would buy it with a hard cash money loan. We would fix the house with the money from the sale. I would refinance and they would stay there as my tenants now paying the same rent as the mortgage. My parents are on board with the plan because they have looked into fixing the property but can’t really afford to update it, which it really needs. Is this doable?
@Jacqueline Palomino , I think a lender even a hard money lender would have issue with your sale because it isn't an "arms length transaction".
Having owned the house for 15 years, they can probably do a cash-out refinance and get $$$ to rehab the house themselves.
@Jacqueline Palomino theoretically this is possible to do. You'll need to make sure that you qualify for the property with your lender and then you'll need to ask your lender if you need the rental income from that property....and if you do, if they would allow you to use the rental income from a family member to help you qualify. Some won't allow rental income of that type to assist in you qualifying. Hope that helps in some way.