All Forum Posts by: Ira Ashton

Hey BP! My parents are looking to move and have offered to let us buy their home in the next couple of years when they downsize. Their home is the home my grandpa built and I remodeled many years ago. We definitely have sentimental attachments to this home and it would be great for our family, but I’m still trying to look at it from an investor perspective. They would give us a deal. The home was appraised for $420k a year ago & I KNOW they wouldn’t ask more than $400k—they may even go down to the loan amount. It also has a very nice 1 bed basement apartment that we could use to help supplement the mortgage, & we could potentially rent out both spaces when we leave. My dad is a lawyer (he does not specialize in real estate though) and it would not be too difficult to structure things however we needed to. He made the loan assumable in case any of his children wanted to take over the loan some day. They currently owe about $365k. Since this is an opportunity to buy a property creatively—which is something we haven’t done before—I was wondering what all of you brilliant investors out there would do in my shoes?? Here are a few more questions. I’d appreciate your thoughts on any of these: •I’ve heard that there may still be certain tax advantages or disadvantages of assuming a loan—to both parties. Is this something that you would recommend we do? Why or why not? What do we need to be aware of? Would it be better to assume the loan and refi at a certain point in time? (I’m pretty sure they got one of the lowest rates out there, FYI.). •We really like the idea of not going through a bank so we can have flexibility in terms, but would there be some benefit to getting a traditional bank loan instead? •What other strategies could we possibly use in this scenario? • I’m sure that we could give them a down payment of at LEAST $20k if needed. They are wanting to build a new home and I don’t know exactly what they would have/need from this deal to do that, or if we should offer some kind of down payment or future balloon payment. We don’t want to screw my parents over. We aren’t sure where to begin here, & we have some time to think about it...but what do you all think? What options could we present to them? Thanks in advance for sharing your wisdom with us, BP community!

Caleb Rigby Thanks for sharing your story. Many people avoid sharing that they lost money, which is unfortunate. The REI game is full of real ups & downs, & it’s great that you’re willing to share your own pearls of wisdom you’re gaining on your journey. The pictures look great. If you’re ever needing another contractor in your pocket, I do renovations all over & have flipped homes personally as well (although not in UT). I’m also curious as to how you have been finding your deals. Again, thanks for your post & good luck in your upcoming projects.

I’m a GC in the Salt Lake area. Give me a call & I’ll see if I can help you out.

If you guys are looking for a contractor, let me know. I’m happy to give you estimates and meet with you (I’m in SLC but I travel). I have flipped homes before out of state, but haven’t had the nerve to get back into the flipping game since moving back to Utah after the market crashed (made some big $ & lost some too...learned a lot). I’ve been really focusing on growing my construction business and haven’t had the time, market knowledge, or connections to start flipping again, but I am definitely interested in dipping my toes in again. Let me know if you’re interested in making something happen, like working out a deal or just using me for GC services. Thanks & good luck to you both!

I'm sorry to hear you've had a hard time finding a reliable contractor. I'm the co-owner of The Construction Guys based in SLC. My company has done several basements in Herriman recently as well. I am out of town right now, & will be unreachable for a week but my business partner actually lives in Herriman & could definitely help you out. I can't post our number here, but you can find us by Googling "the construction guys SLC." Best of luck!

Hi Ann! I am a contractor with both commercial & residential construction experience in SLC. Feel free to contact me. I'd be happy to discuss your projects and give you some free bids.

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No shame! I bet most Americans can't even tell you how much cash flow they have every month after expenses, as most Americans live paycheck to paycheck. We've downsized several times & although it feels like you're going backwards (I get you), those are some of the best decisions we've made. You guys are being smart to even consider downsizing. Minimalism is in right now. Just tell people you're embracing it. And if your wife's heart is at home with her child, she will be happier in an apartment anyway if she can stay home. We were in the same scenario. Happy wife happy life, right? Just remember to run the numbers. If you bought your house in 2015, it's likely appreciated, but don't forget to factor in selling costs. There's a chance you may have only broken even. You don't want to end up owing money on your house when you sell that will add to your financial burden. It seems like you know what to do, but good luck in your decision.

Congrats on getting your first rehab! That's big. I'm a GC in SLC. Feel free to PM me if you're interested in getting a bid. I have almost 20 yrs experience & have focused on larger remodel projects all over the greater salt lake area recently. Good luck!

Caleb Rigby Looks great! I'd love to know how you found the deal.