Thread: good idea?

Originally Posted by chapito

Long story short, we currently own a 2 bed/ 2 bath home in the Bay area (CA) and are expecting our first child. We bought in 2005 and the value of our house has decreased, but not significantly yet.

Our monthly mortgage payment is around $2400. We're considering asking my parents to purchase a house (as an investment)in our city (larger than our current house), and then renting it to us, as we rent out our house. By my estimates, my parents mortgage payment would be around $1600, we could rent our house out for $1600, and then cover the rest of our mortgage ($800) like we do now. So it would be a wash, but we'd have a bigger house.

Are there any obvious issues to this idea that I might not be seeing? My wife and I like the idea, we desperately need more space for our growing family.
thanks in advance,
Matt

Hi Matt,

I think this is a good idea as long as you help your parents get into a below market value property. One really neat opportunity that you will have the chance to take part in is the ability to then depreciate your condo. This will really help you out when it comes to taxes not to metion it solves your problem of limited space. If you work it out right it will be a win win situation for you and your parents. Good luck and if you would like to know how to increase your rental income using rent to own strategies dm me.

Originally Posted by chapito

Long story short, we currently own a 2 bed/ 2 bath home in the Bay area (CA) and are expecting our first child. We bought in 2005 and the value of our house has decreased, but not significantly yet.

Our monthly mortgage payment is around $2400. We're considering asking my parents to purchase a house (as an investment)in our city (larger than our current house), and then renting it to us, as we rent out our house. By my estimates, my parents mortgage payment would be around $1600, we could rent our house out for $1600, and then cover the rest of our mortgage ($800) like we do now. So it would be a wash, but we'd have a bigger house.

Are there any obvious issues to this idea that I might not be seeing? My wife and I like the idea, we desperately need more space for our growing family.
thanks in advance,
Matt

Then why you waiting for other's reply.. go for it

We just started looking this week.

Originally Posted by chapito

We just started looking this week.

Hope you find the right place. I would suggest getting a copy of all the new defaults in your area from a local title company. Then find an agent that has experience doing pre-forclosure deals. You best values will come from putting together a deal with someone that has just entered into default and wants a clean slate. Good luck and feel free to ask any questions that you have.

Thanks James, great information. much appreciated. I'll let you know how we progress.

Originally Posted by jamesww

Hope you find the right place. I would suggest getting a copy of all the new defaults in your area from a local title company. Then find an agent that has experience doing pre-forclosure deals. You best values will come from putting together a deal with someone that has just entered into default and wants a clean slate. Good luck and feel free to ask any questions that you have.