Investor · Columbus, OH · Member since 2014 · 11 posts · 3 votes
This is going to be a good one...
I'm interested in buying a second home for my mother so she can be close to our family as we expect our first child. She has a primary residence in FL and this home will be in OH. The home on it's own is a great fit within in my current buy & hold investment property portfolio - so it makes sense on its own for me.
I'd really like to do a partnership deal with her so she can have some ownership in it alongside me and I can put less money down (we will do traditional financing). But given she would be an owner and the occupant every traditional partnership scenario I run just doesn't seem to make it mutually beneficial for us. It works out for me if I am 100% owner and rent it to her though.
Just curious if anyone has done anything like this or has a structure in mind that may work. Not a traditional deal my any means, but something I'd like to do once for her to have a place near my family.
Real Estate Broker · Salt Lake City & Oklahoma City · Member since 2018 · 3k+ posts · 2k+ votes
6y
Hey @Tyler Durbin, I've run analysis on deals like this many times before and have come to the conclusion that this isn't a good fit for both parties. On the face of it you'd gain owner-occ financing on it (low down payment, fixed rates, etc) and she would gain . . .
Therein lies the conundrum AND the opportunity. The lender that funds the owner-occupant purchase is NOT going to be keen on the idea of beneficial ownership being split after the fact, but there are other ways that you can add value to the deal, like managing the property fully or partially, that would allow you to be a blessing and earn AND, over the long-haul you can have a pre-established plan with her to make this property yours somewhere down the road.
Hey @Tyler Durbin, I've run analysis on deals like this many times before and have come to the conclusion that this isn't a good fit for both parties. On the face of it you'd gain owner-occ financing on it (low down payment, fixed rates, etc) and she would gain . . .
Therein lies the conundrum AND the opportunity. The lender that funds the owner-occupant purchase is NOT going to be keen on the idea of beneficial ownership being split after the fact, but there are other ways that you can add value to the deal, like managing the property fully or partially, that would allow you to be a blessing and earn AND, over the long-haul you can have a pre-established plan with her to make this property yours somewhere down the road.