Quit Claim Deed for a Family Transaction

[Lee Ribeiro]

Hi Bigger Pockets Family!

This is my first post on here, and am in a bit of a unique situation. I am planning to purchase a property that my father currently owns. He had formerly purchased the property in 2011 in a foreclosure, it is rehabbed and currently rented out. The property is free and clear of any mortgage.

What we want to do on a high level is add myself on to the title via a quit claim deed, then refinance the property and cash that out to pay my father for it, I would take on the new refinance morgage, ultimately then take his name off the title. It seems that this route would be the easiest and quickest way to make the transaction while avoiding heavy taxes for a property exchange.

As fairly new to this process and the real estate world in general, I am curious to see if anyone else has done something like this and what we need to be aware of? Or if there is a better way to accomplish this family transaction? I'll definitely consult legal advice before going through the process, but was curious to hear what others have to say.

Any insight would be much appreciated!