Financing a home for my Handyman... Tricky Situation
Hi, all.
My handyman/property manager lacks the ability to get home financing. Years ago I agreed that I would buy a home under my name, rent it to him, and figure out how to transfer title to him or to his young son when the home was paid off (possibly even in my will, if that is the only way to make it work).
Obviously, this was not something I did as a financial masterstroke. I have not been able to realize any meaningful profit on the arrangement. I was primarily motivated by the desire to assist him but nor am I running a charity, so to say, and he fully understands the benefit of being able to borrow my credit in this way. He also appreciates that I can offer him flexibility by not "foreclosing" on him when he cannot make rent on time, which happens a handful of times every year (though he always makes good).
Anyway, we still owe 85K on the house. I was thinking about paying the house off in full and then collecting the rent myself in an effort at least to get something out of the deal. I would appreciate any reactions/ideas/advice.