Taking over property from retiring father...FAQ?

[Juan Espinosa]

My father is retiring soon to Mexico, and wants me to take over his rental property. The home cash flows very well, but he owes as much as the home is worth. And I'm currently maxed out on getting another loan. I currently have 3 SFH which I am either the owner or partner.

I would be taking over as if I were the owner. Paying the mortgage, collecting rent, handling expenses. And I would also keep any cash flow at the end of the month. (Some might be asking why would my father give up this cash flowing property so easily? Simple, he is 74 years old, he already has a house in Mexico, the cost of living is very low there, and most importantly, he is a great father.)

My questions are

What can I do to have my name on the deed itself, in case of emergency?

What other steps can I take in order to protect not only my assets, but those of my father as we'll?

Any help would be appreciated thanks!

[Jerry W.]

@Juan Espinosa one thing some folks do is have your dad sign a deed over to you right now. Keep it in a safe place and do not file it until you can refinance it into your name. it is sometimes called a poor man's will in my business. If something happens you can file it immediately and most banks will not accelerate if the transfer was because of death. there are some disadvantages to this sometimes on your basis in the property for taxes.

As to how you can legally sign leases etc now, get a limited power of attorney to handle all legal matters concerning that property. Make sure its a Durable power of attorney so if he were to get an illness that made him incompetent it would not become void.

There is also a type of deed called a life estate. That is where he transfers the property to you and reserves a life estate. It is like a pay on death clause. He gets full use of it for his lifetime, but you get it as soon as he dies. That would probably not be right for this case.