A zero cash-flow BRRRR for my Mother
My mom is getting older and a two-story home is less than ideal. She rents off of another family member and somehow I'm the one who fixes everything that goes wrong at the place. I installed new flooring in entire first floor, ran gas line for her dryer and bought paint. I don't mind doing these things, she's been more than great to me.
I found the perfect place, but it turned out to be a foreclosure and I don't have the cash to buy it outright. It definitely got the creative juices flowing, however, and I believe that I can help my mother out tremendously and create a HELOC for myself in the process. Since I don't have the cash and neither does she, if we can find the right property that meets all requirements for a good BRRRR deal, I'd like to have her use the FHA 203k loan with me as a co-borrower. Once the property is in good shape, cash-out refi or just take out a HELOC on the equity. I would put down 10% or more to be able to get out of the PMI.
Rather than make money off of my mother, I'd rather her just pay the mortgage/taxes/insurance. Servicing the loan and cheaper utilities would save her $150-200 per month and I would have access to a line of credit to help me out over the next couple of years.
Does this sound absurd?