Transitioning existing properties into long term rentals

[Danny Johnson]

I purchased 2 condos so that my two married daughters had a place to live.  They are paying me rent directly.  I purchase the properties as a non-occupant coborrower.  My name and my daughter’s name(s) are also in title and the loan.

I have really good equity in both properties (six figure) with great interest rates.

At some point my daughters and their husbands will move out to upgrade to something bigger.

I want to turn these properties into investment properties after my daughters move out:  thinking the best way is to convert in my name only.

Also considering leveraging the equity in the properties to help buy new homes/townhomes for my daughters when they are ready as well.

Wondering what the best strategies would be for me to expand property portfolio, minimize tax impact , create more passive income while continuing to help my family grow.

I appreciate any advice!

[Danny Johnson]

Thank you Jaron..really do appreciate the guidance and candor…I am probably not articulating the finer points well…my daughters are actually only the tennets…they are not involved in any of the potential decisions I am considering.  Getting into these properties as a non occupant coborrower (all the money invested to get in was mine) was a less cash heavy way to get into the properties versus as an investor.

I already have great equity in these properties and prices continue to up.

Sounds like, so far, the consensus is to sell the properties and roll the money into other non-condo units.