I currently rent a room out to a close friend.Recently got married and as a gift my mother is going to remove her name off the deed.The house does need some touch up done to it, which the wife and I are willing to pay for.

Any pitfalls to watch out for with tax basis, depreciation, or gift/estate complications down the road? 

My lender is trying to get me to sign a 1-4 sales contract with things like a gift of equity from old owner, calling her the seller and me the buyer, but I am not the buyer.

While the idea of your parents giving you rental property might sound appealing, there are important legal and practical challenges to consider.

Investment Info:

Condo buy & hold investment.

Purchase price: $250,000

Cash invested: $18,000

Condo in Smyrna a short walk to Truist Park/Circle 75 business offices. Got it on great terms at 250k...

It used to be more common when gift card churning was hot, but most banks caught on.

It is also a very happy owner who allowed flexibility in the midst of it all—and is now thrilled to have had a smooth transition between tenants, with an adequate scope of work, a plan for and virtually no impact to income.It is also me, happily gifting this trim "damage" from the disposition letter.

Hi BP Community, I’m helping a family member (high W-2 income, excellent credit, based in the Bay Area) explore creative paths to primary homeownership in a high-cost market (Menlo Park, CA).They are fully capable of covering a mortgage in the $2.0M–$2.3M range, but like many, liquidity is the blocker—no family gift, no stock windfall, and equity is currently tied up in a second home in Palm Springs.We’re looking into two models:Silent Co-Ownership•Investor contributes all or part of the down payment• My family member would live in the home full-time and covers 100% of the monthly mortgage, tax, insurance, and maintenance•Equity and appreciation are shared based on initial structure•Clear buyout option or exit terms in ~5–7 yearsLease-to-Own•Investor buys the home• Multi-year lease and a pre-negotiated option to buy at a set appreciation or fair market formula•Builds equity or credits via monthly payments or upfront considerationHas anyone done something similar?

"Send them Cards, ask them how they're doing, drop by and visit, leave a gift"Her wisdom from the 1980s as a top Coldwell Banker Broker resonates still today and has shaped my professional journey and inspired me to mentor numerous RE Professionals over the past three decades.

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