Going on Title with family member repercussions

[Brett Hearn]

Hello out there,

General question for you all. What are the repercussions for me going on the title of a SFR which my father owns with no debt on the property (currently appraised for 175K. The plan is to fix it up in 3-4 months and cash-out refi for 75% of the appraised value.

I was told that any notary can come and put me on the title with my father, but Title company won't get involved? why?

Also, the financiers said that I need to be on title for at least 3 months in order to do a cashout.

Ultimately, what are the repercussions for me going on title with my father now, as he is still alive? Will it effect a potential sell of the property in the future.

Number breakdown:

Appraised for $175K

Rehab:              $30K

ARV: $230K

75% ARV= Cashout $174K

Put property into a 30 fixed at 5-6% and have a loan on property.

Any kinks in the plan?

[Bruce Lynn]

Why do you go on title?   You also want to check with your CPA to determine how gifts are handled in CA to ensure no gift tax is due....also you want to make sure adding you to title doesn't trigger some kind of change to your property tax or valuation.