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Updated about 4 years ago,
Rent to Family (mother in-law)
Should I buy a small home like a 2/1 and rent it out to my mother in-law?
She and her new husband is currently renting a duplex for the last 3 years never miss a payment or late. Her credit score is in the high 700s maybe 800s now but her proof of income show shes not making very much. Shes a hair dressor in her own home with regular clines that's how she make her money but not showing on her W2. Her new husband is working everyday lay tiles and odd constuction job 5-6 days a week again not showing on W2 because he's waiting on paper from immigration .My question is should I buy a house and rent it out to them and get couple hundret dollars cash flow for couple years and refinance cash out to get my 20% down payment back and then sell it to them for what I paid for? The duplex they living in is crappy and dated , landlord never improve the property but raise the rent every year.
I just wanted to improve their living quality of life they both hard worker and responsible with their money. Some of friends said don't do it , some said never do business with the Family. I am confuse why can't it be a win win situvation ? thank you for reading and feel free to comment.