Hard economic situation. Parents asking me to get mortgage

[Javier Blanco]

Long story short. I am inmigrant, my family and I got here (Atanta) aboit 4 years ago. My father got laid off in May and due to his age and high level of expertise its really hard to find a corporate job. My mom cant work at least right now due to health issues. We have been renting a condo all the time but now since I know quite a bit of real estate I have been telling them that renting tnalthough it was convenient due to different factors it has also been a waste of money. They agreed to try to find something to buy but my father doesnt have an amazing credit score like me or my brother, plus he is unemployed so he wont get a mortgage. I told my brother that he has to be the one getting the mortgage because I have plan of starting my real estate investing career in January (buying a duplex) so I cant have a mortagage like that on my name because my debt to income ratio will be high. Also they want to get a condo or a townhouse because its more comfortable and I am here dying in my mind thinking on HOA fees, not having an extra room to rent for house hacking, etc. My brother told me that one of the lenders told him that the loan options would be better if we both are in it (me as a cosigner) thing I refuse to do. If I help, I want to do it under my terms. Buying a house, getting an FHA owner occupied or something like that. Please I need some advise!!

[Jerry W.]

@Javier Blanco, there is often no right answer on how to deal with family. Hurting your financial situation to help them out has its limits. If you have family who has problems are you expected to be the welfare to take care of them forever? Still we feel have to help them. Perhaps a compromise. Buy the duplex or house that you want for an investment and rent to them. If they have their own money they get to choose the house, if it is your money and credit then you get to choose the house. Make your brother co-sign on the lease. They might not like it as much, but it will be good housing. Hopefully they will take very good care of it. You still get to show rental income on the house, build equity and start your portfolio. If your brother wants buy it jointly with him. If need be you 2 can still pay the rent, show it as income and keep your DTI up. You can claim interest and depreciation as well. Now maybe your parents want to own it? However since they are older what if one or both must go into a nursing home but cannot afford the $7K a month or more? If your parents own the asset then Medicaid will place a lien on the property and eventually sell it to pay for nursing home care. The look back period on their property is 5 years. You can provide for your parents and build a portfolio at the same time. Just a thought. Either way good luck bud, hang in there.