So my parents have a rental property they have owned for about just under a decade. The current tenants are terrible and in the process of eviction. My dad is tired of the headaches of being a landlord and just wants to sell the property. Me, my mother and sister have told him we don’t think that’s a good idea but he seems hell bent on selling. He has about 20,000 left on the mortgage I am wondering if I could get that from a bank and just buy the house from him. I have less than stellar credit but I’m pretty sure if I got approved he would agree to sell the house to me that way we keep it in the family.
Posted by RemarkableAd2009
5 Comments
You mean buying the house from him just for $20k? I mean if he’s okay with that then sure but I’d be very surprised. He could probably get hundreds of thousands from selling it.
Your Dad is unlikely to sell the house to you for 20K unless the equity in the property is of no interest and he’s willing to give it away and forgo the retirement income the proceeds would generate if invested elsewhere.
Secondly, if he did sell you the house for $20K, do you have the financial capacity to pay taxes and insurance. Taxes will be resent upon sale and if you follow any real estate related conversations, you will know that more people than ever before are being forced to sell duet increasing taxes and insurance.
You will have monthly electric, gas, water, sewer, cable, trash pickup and lawn maintenance. Most lenders/insurers are really sensitive about roof condition and insist on new roofs. At least 10K. The fridge dies? A few thousand. Plumbing backs up… good luck.
A lender is not going to give you special consideration because your Dad “is selling it to you to keep in the family”.
Your Dad is correct and you have much learn about business.
Keep it. Buy him out. Turn the whole thing over to a property management.
If he is selling the home for 200k, and you got 20k from the bank, how is he getting the other 180k that you would then owe him? Not saying this can’t be done, it just can’t be done the way you are thinking.
I think what you’re suggesting is a gift of equity.