Newbie looking for guidance with existing rental

[Darryl Gill]

Hi BP community,

First I wanted to say, 'Hi' to the community.  I've been listening to podcasts and been learning a lot.  Yes, I want to have a few real estate investments, but first I have a scenario I hope someone can guide me.

My parents have a rental home which they have invested in for me.  I've since moved out and have purchased my own home four years ago, which is awesome.  My parents have told me that I am not able to take over the property yet because the house is in a trust with my parents and my name on it.  The title of the house is in their names, not mine.  Thus I can't do anything with it yet.  They are still managing the house.  I have not seen any documents yet.  I have had a small conversation with them about taking over the house but nothing serious.  Since, listening to podcasts.  I want to make it more serious and what to be prepared with what we can do to move forward.  I believe everything is paid off.

What I am looking for is guidance to see what steps or resource I can look up about taking over the property.  

Appreciate your guidance and if there are other questions I should be asking, please let me know.

Thanks

Darryl

[Jeremy Hua]

I would purchase the property from the Trust. Effectively, that money is going to be passed back to you upon the death of both of your parents. 

Also, your parents can gift you a combined total of $28k/year. And, they can gift your wife $28k a year. I don't know the market value of the property we are discussing, but this could be a way for you to purchase it. 

As far as leveraging, in my experience, even if you pay cash for it, the bank will make you wait a year before you can do a cash out refinance. Your wife is right though, and I would make your decisions with her input. Men tend to be risky, and women think with their heads. You might hate being a landlord, they call you for the dumbest things.