Family dilemma on rental property.

[Keith T.]

Hello everyone.

I have a little dilemma with my father on a property of mine- here it goes.

I purchased a three family house about two years ago. My father is a general contractor who helped me fix up the property. A lot of the work he did was after hours and my wife and I along with my father did all the work. We put up a wall, new kitchen tile flooring, new closet in one of the bedrooms, painted the 3-bedroom apartment, installed sliding doors in the bathtub, and painted the front and back entrance hallways. I paid for all materials. My dad is now asking me to pay him for labor costs and also wants the house to be appraised so I can refinance and give him half of what the property is worth. How do I go about this situation.. I have tried speaking to him numerous times that why would I pay him for his labor costs (that my wife and I also put in without pay and I paid for all materials) along with giving him half the property value. We also haven’t had the property that long to take out half the property value on a refinance. I am the sole owner of the property and we never made a contract regarding payment or partnership. Cash flow is good as is and I don’t want to sell the home even though he will ask me to do so in order to attempt to get half the sale. This is my father and is why I’m having trouble with handling this situation. Any response will be appreciated.

Thank you