Author Topic: Is this possible? or Crazy?  (Read 630 times)


  • 5 O'Clock Shadow
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Is this possible? or Crazy?
« on: January 24, 2018, 02:39:15 PM »
I am 23 years old. In May 2018 I am finishing my degree and moving to Charlotte, NC for work. My parents want to help me out, but we are not sure which way is the best way forward. They want to receive the tax benefits of buying a home, , they were previously considering buying a rental in their state of Florida. However, recently they suggested that they might be willing to take a mortgage in their name (and provide down payment) and let me live in it in NC while I make monthly mortgage payments to them. Presumably after 10 years or so I might move and they would sell the house and receive whatever sum of money they put into it, meanwhile I will have built equity instead of renting.

Is this possible and/or worth it? If so what is the best way to make this work? We were thinking condo in the 130k-150k region.


  • Handlebar Stache
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Re: Is this possible? or Crazy?
« Reply #1 on: January 24, 2018, 05:03:23 PM »
I was the bank for both of my daughters first real estate purchases. And this works pretty well.

Frankly, it's a heads you win and tails your parents lose situation... which means it's a pretty reasonable approach when parents want to move wealth to a kid or when a parent is happy to "partner" with a kid and the kid wins if things turn out well and the parents pick up the tab if things don't.

BTW, the mortgage needs to be real in order for your interest to be deductible. So someone has to file a mortgage with the county or whomever.


  • Magnum Stache
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Re: Is this possible? or Crazy?
« Reply #2 on: January 24, 2018, 05:12:28 PM »
National Family Mortgage might be worth it. They handle the paperwork and servicing and 1099s, etc.

Rich on Money

  • 5 O'Clock Shadow
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Re: Is this possible? or Crazy?
« Reply #3 on: January 25, 2018, 04:31:18 AM »
I think it's fine.  The more important thing is that you buy a good property at a good price.  I always evalulate properties as investments, even if I'm going to live in them myself.  That way, if life changes, and you have to move away sooner than you inspected, it will make good money as a rental.


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Re: Is this possible? or Crazy?
« Reply #4 on: January 25, 2018, 08:37:26 AM »
Personally, as a young adult, I would not want to tie my finances long-term with my parents, especially first starting out, but as long as everyone is clear on their role, it could work out. Who would determine when itís time to sell? You or them?  You say they will get the money back that they put in? Does this mean after the sale that they will just claim what they put in as the down payment, plus any cost and repairs they put into the house over the years and let you keep the rest?  How put out would they be if you decided to move after a few years? What are the back up plans for in case that happens? Will they sell earlier than expected? Would they be comfortable finding in managing tenants from across state lines? Get a property manager? This is what I meant by I personally would not want to tie my finances to someone right out of the gate. That would mean having to consider others in major life decisions, such as moving and where to live.

 As long as you get everything sorted and clear, it could definitely be a boost to you financially to be able to get your rent back, especially if you have a roommate(s).