Loan Assumption (Family Farmhouse)

[Shaydon Childers]

Hello, I am trying to find a creative way to take over my father in laws house (67). He owes 200K (assumable) on a deteriorating farm house in a great area, on 5 acres. House is worth 650K in its current condition and about 900k after 130 K rehab. He is retired, on a very limited income and can't afford a new roof or any of the long put off maintenance. There is a (non permitted) livable ADU on the property. He would like to stay on the property until he leaves this earth. I suggested to him that I assume the loan, give him 30K down, let him stay in the ADU rent free for life and monthly installments to pay him the rest of his equity. He wanted 150k down and I think he would have done it. I don't have enough cash for the down-payment and the much needed maintenance. He is also worried that we could just kick him out some day if we moved or changed our mind. Any thoughts on a better angle? I don't need the house as much as he needs the help but my wife really wants to live there. She is also worried he will lose it someday, he is filing for bankruptcy at the moment but assured us the mortgage is current.