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Jonathan Vandal
  • Rental Property Investor
  • Clearwater, FL
1
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Co-signing a mortgage while retaining buying power possible?

Jonathan Vandal
  • Rental Property Investor
  • Clearwater, FL
Posted
Hi everyone, I have a question which I would appreciate some input on. I've been studying real estate for awhile now and am getting close to being ready for my first deal. (House-hack) The main reason I'm getting into real estate is not only financial freedom for myself but to get my parents retired. They are in their 60's with no pensions, retirement plans, or property. I'm planning on helping them to purchase a home soon, possibly using my credit to do so unless we can find an owner finance or similar situation. My question is this: is there a way I could use my credit to help them buy a home while preserving my buying power for future deals that I want to do on my own? I've heard talk of possibly being a lien holder and basically have them pay me rent which would just go to the mortgage. How could I best structure this type of arrangement? Thanks all in advance, Jon

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9,937
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Chris Mason
  • Lender
  • CA
10,793
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9,937
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Chris Mason
  • Lender
  • CA
ModeratorReplied

Hi @Jonathan Vandal,

Cashflow positive rental properties help your debt to income ratio, they do not hurt it. They do increase the reserve requirements, of course. Path forward might to be to handcuff your parents to ONLY properties that will cashflow as a rental, and have them pay fair market rent.

  • Chris Mason
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