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Updated over 9 years ago,
Putting a loan under my name for mom. Good or bad?
So, my mother has $5,000. I plan on house hacking to build my rental portfolio. On November 30th our rental lease will be up. I was planning on buying a duplex to house hack for that date. I've decided however, that since I only have $3,400 saved up. I was going to go ahead and rent for another year so that I could build some more capital.
Ok, so the problem is, my mother decided she wanted to put the $5,000 towards a downpayment on a home. She wants the home as her personal residence though. I am planning to house hack the property and using it as investment. Her credit is super poor, and she wants to know if she can give me the 5k and put the loan under my name instead. I wanna know if this would be a good idea or not.
How can I use this to my advantage and how could it be a bad idea? I feel like this can potentially be a great idea, but I feel like I may be missing some potential disasters that may come up in the long run. Please help!