WARNING: LONG AND DETAILED POST AHEAD!
Not for the faint of heart. I'm providing as much detail as possible up front, we've thought about this A LOT! So anyway...
Hey Forum! Long time no post for me.
I am looking for some advice/skepticism/constructive criticism and I value the feedback this forum has to offer.
My mom currently lives (alone) in New England and is ready to move to Portland, Oregon where I am. I am here for good with my wife and son and she wants to be here too! We are trying to figure out the best way to have her here and optimize for her needs and priorities.
Mom stats:
67, retired on permanent disability
single (and ready to mingle?)
no emergency debt
Assets
Currently owes $150k on a home worth approximately $370k ($220k equity)
Some sort of combined pension (lifetime payment, amount unknown) and 403b ($350k) *details to be confirmed ASAP*
Income
Currently receives $5500/mo from a long term disability policy which will expire end of 2018
Social Security will be in the range of $2k/mo when it kicks in (after LTD policy ends)
Pension payout unknown
Our top priorities in the move are:
1) Be close to me, within a few miles at most (I live in Northeast Portland)
2) Long term financial stability
3) A space that suits her physical needs (low on physical maintenance, single story)
4) Other stuff I'll remember when you ask questions.
So, I generally think renting is a no go unless I can be convinced otherwise. Rents are just too high anywhere near me and the uncertainty on top makes it a non-starter.
She can't really afford to buy a house here outright, and again, any house in the area would be too expensive even with a substantial downpayment.
The best idea we have as of today is to raise my house about 3' off the foundation (current basement ceiling is 6'6"), and build out the basement to be a custom apartment. I am not looking for advice/concerns/feasibility on this idea. I have close friends who are architects and builders, I will be the general contractor, and have already consulted with a house lifter and have quotes on the project. It is logistically possible and will cost approximately $150-170k total. The idea is that mom funds this up front with her current equity, then she moves in and lives there 100% rent free for the rest of her life, regardless of length. We have contingencies in place for if her needs change, and we are very close and have no issues with the exchange of large sums of money. I know these things are deal breakers for many people but they are not for us.
I'm really just looking for a gutcheck on this idea, or other ideas I haven't considered. This is a huge chunk of money for a "basement" but at the end it will be a custom designed, brand new space, it will allow her to be close to us so we can provide care as she ages, she will be close to my son forever, and it will provide assured financial stability for the rest of her life.
I appreciate your feedback, and please be considerate as you offer advice. I know issues of family and money are complicated and we are not making any of these decisions lightly.
Also a final note, I am financially stable and open to ideas that involve my finances in a reasonable way (i.e. buying a house together or co-signing, things like that)
Cheers!
James