Home Reversion possible in US?

[Vic Liang]

Hello everyone,

A coworker of mine's church friends has run into issues with being able to afford their mortgage payments as they slowly decline in health. They were contemplating selling to me knowing I'm a real estate investor hoping that I could rent back to them for a lifetime lease while transferring ownership of the property to me, and I'd be responsible for taxes/insurance/remaining mortgage.

I've done some research and it seems to be similar to a Home Reversion which is fairly common in European markets. In terms of doing this, has anyone met anyone that has done something similar to this? Is it even legal to do here? If any Oregon real estate attorneys are willing to sit down with me to talk that'd be awesome.

And in terms of tax implications, the idea was that the fact that I was renting back to them was their compensation. So on paper the value I'd be receiving from them should be equal to the average rent prices, and how would that look like for my taxes? How do I need to structure the contract to make it look like I was doing a standard rental? If any CPA's would be able to clarify this I'd be happy to talk as well.