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Updated almost 8 years ago,
How to approach buying a home with specific financial results
Was not sure how to title this post but I will explain everything just looking on ideas on how to move forward with a situation we are in.
First my father gifted me and my brothers the equity in the single family home we grew up in. He owes about 100k and the house is worth 210-225k. This house is going to stay under my fathers name and we plan on refinancing or heloc depending on what we want to do with the house we just rented it 3 days ago. We were thinking refinance if we are planning on selling the home 'soon' or heloc if we decide to keep ownership of the home. Does this seem like an ok idea?
Second my father has a friend who owes him over 100k cash. the friend has not been paying his debt but does owns a 3 family home and offered to sell the home to my father in order to reliquish the debt he owes. His friend owes around 110-120 on the home. it is worth about 180k. we are trying to figure out how to approach this. My father is having trouble getting funds because of numerous businesses and homes he has under his name. We could buy the home using my brothers and my names for him but wouldnt we have to take out the mortgage for only the purchase price and we probably would not get approved for more than the sale price. As we bought a multifamily 6 months ago. My father does not want to buy and hold the property but we would like to. Is it a bad idea to buy the home under me or my brothers names. Then plan on taking out a home equity line of credit to get the additional funds out of the house owing my father the rest. so he gets his 180k total and we get a decent deal. once we put money into fixing the house and property in the area has been rapidly rising.
Does this seem possible? And I completely off with my train of thought?