Need A Financial Wiz To Answer This Mortgage Investment Question?
Last year we listed our home on the market for $475k but didn’t sell. The market value of our home is now worth approx $400k (declining everyday). We know that right now is NOT a good time to sell. (We don’t Have to either). But we would like to Buy a home since it is a good time to buy. (And we need the space). We owe $125k on our mortgage.
My parents are seeking to invest money in the real estate market. Coincidentally they have approx $125k to invest in a rental property. (They are looking in Texas because it is cheaper than California).
If it is a wise investment for both parties, I would like to be partners on my home. I would need SOME money (50k?) in my pocket to buy another home.
Ideally:
Both parties would have a monthly positive cash flow on the rental. This place could rent for $2200/month.And there is an HOA of $350/month.
Both parties would gain equity when we all do decide to sell.
Any Advice?
Real Estate Investment Laws Texas?
Ok here is the scoop…Your are going to help out a family member whos credit needs some work and who can’t qualify for a home loan…
Your combined net income is 250k- you have great credit. You offer to go into a deal with a family member, to help them get into a house sooner than next year . You offer to give them 20% down for a house in the most desired area of the city-you’ll make money if you have to sell… You are the main borrower, and a non accupant of the house… Here are my questions..
1)Can their name be on the title?
2) If the lease to own payment is the same as the mortgage payment is that earned income from the property?
4)Say you buy the house for 200K and after 2 years when they are ready to purchase the assested value is 250k – can it be sold for the original purchased price?
5) How is it claimed at tax time as an investment property if it is not making money just enough to cover the property tax and the mortgage payments?
Thanks