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Updated over 3 years ago,
Crush student loans with real estate?
Hello everyone!
I have a unique situation presented to me and I would like yall's opinion.
My grandmother passed away and left her house to my Mother and Aunt. Everyone wants to keep the house in the family but I am the only one financially able to purchase the house. My Mother is content giving up her share to me if she can live there and pay me rent. My Aunt would like up to 1/2 of the appraisal price for her share. The house has an additional mother in-law suite that can be rented out. Ideally, I would like to finance the whole appraisal price, pay my Aunt and get the title in my name, use the other ~1/2 to pay my student loans. I am a new dentist so transferring my student loan debt to real estate debt that would provide me income is appealing.
The homes value is ~$300,000. So ~$150K to my aunt and ~$150K towards my student loans.
I think I could get $2,100 for rent between the main house and the in-law suite.
Being a new dentist I don't have a lot of money for a down payment so I'm not sure a conventional loan would work for me. Any creative ideas for financing?
I wanted to know if you all had advice on this situation. Thanks in advance!