I have been renting half of a duplex for the past few years. It's a great place, way below market on rent, with a very responsive landlord. I'd live there indefinitely if I could.
Unfortunately, my landlord's daughter was living in the other half and has had some health issues. She had surgery to remove a tumor caused from traumatic brain injury, and a subsequent stroke left her in a coma from which she recovered but remains semi-paralyzed. She will not be able to live on her own anymore. Due to this and other things, my landlord decided to put the house on the market. She asked me months ago if I was interested in buying it, but I didn't think I could afford it at the time (it's valued at more than 200K on Trulia, not sure yet what she's asking for it...I only make around 40K, though I save almost half my income because my rent is only $600). I just heard from her again that the realtor is coming to look at the property tomorrow, and wondering again if I'd like to buy it. She says she'd give me the down payment, and closing costs would be folded into the rate. I have no idea what the rate would even be as I have not been pre-approved for a mortgage. The other stipulation is that she'd want me to leave her daughter's side as is, but she thinks Section 8 would pay me for it.
My questions for you all:
1) Is this just too good to be true? As much as I like my landlord, couldn't she make a better deal out of this some other way? I am not quite sure why she's making me this offer.
2) Should I get pre-approved for a mortgage just in case?
3) Does that Section 8 thing sound legit? I know nothing about that.
4) What else am I overlooking? I did my homework on home ownership several years ago, but had kind of given up on the idea. I would like to keep living in my city and potentially this house until I FIRE, but I still don't really like the idea of tying myself down with property.
If it's a legit deal and solid "investment," it seems like it might be worthwhile. Thoughts?