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Updated almost 6 years ago on . Most recent reply

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5
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Jason Ensign
1
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5
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Investment property for parent - showing record of revenue

Jason Ensign
Posted

Hello! New to BP, closing on my first investment property on a couple weeks. The property is something I am purchasing for my mother, she had been paying rent and I saw this as an opportunity to get my first investment property. I am able to get a conventional mortgage since the house is for my mother and the money she gives me for "rent" will not be considered revenue by the IRS since a parent can "gift" money to a child. 

However, I want this property to be the first of multiple. Looking to the future, I know that I cannot claim "rent" as revenue to a lender unless I have collected it for at least two years. Will there be a conflict showing the money given to me monthly by my mother as income in the eyes of a lender?

This may not even be something I have to factor if I can BRRRR the next investment but I would also want a hard money lender to see this house as an asset.

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