Family home financing question

[Gabriel Kreider]

My father in law is thinking about selling his house in Virginia Beach on a lake. He would like to keep it in the family and has suggested turning the mortgage over to us. We look at it as an amazing opportunity if possible. The mortgage would be 300 with an estimated value on the house at around 550 so we would have a lot of equity. We would want to hold on to and rent the property (possibly do short term eventually).My wife and I have two rental properties already and idk if the bank would let us get another mortgage for an investment property with no rental history. The other thing is we are located about three hours away. My possible solution would be doing a rent to own option for a couple years and basically subleasing it so then when the time was up we could get a loan for it with no money down because of the equity. The monthly mortgage/taxes/escrow/HOA would be about 1800. I'm not sure what the rental income would look like. With it be a 3/2.5 lake house in a great neighborhood I think it could be rented for at least 2300-2500 but I'm not as familiar with the market there.

Any ideas or suggestion? Would rent to own even a possibility? 

[Patti Robertson]

Hi @Gabriel Kreider. What lake is it on? Just curious because I live in Virginia Beach on Lake Joyce. It's the only lake in our market that is not privately owned that you can put a motor higher than trolling on. RTO is definitely an option in this situation. Or your FIL could just sell it to you and offer owner financing while you work on getting the mortgage. This could be sub-to, but wouldn't have to be.

There is one huge kink in your strategy. Virginian Beach has banned short-term rentals.  If the property doesn’t already have a condition use permit or isn’t located in Sandbridge, you aren’t going to get one unless our laws change.  Long term rental would be an option.  

I would recommend attorney John Napier with Hangar Law to assist you in the transaction. He is familiar with the process of these creative deals.  He is actually one of the panelists at the Tidewater Real Estate Investors Group next week. Here is a link if you want to check out that meeting.  

https://www.trigofva.com/Event...