Helping Mom Stay in Her Home

[AMY NEWTON]

Hello all,

This post is in relation to a blog post I read by Dave Van Horn:

http://www.biggerpockets.com/renewsblog/2013/05/01/equity-rich-cash-poor/

I have been thinking a lot about this post as my mom is in a similar predicament. She is close to retirement, two years or less and owns her home outright. However, with her social security alone, she will not meet all of her expenses. She does not want to sell her home but does want to get it out of her name in case something were to happen to her. She can put it in her children's names (there are three of us), but we haven't taken the steps to do so just yet as we are unsure of how to do it in the best way.

I am interested in the concept laid out in this post and am wondering if there is a way for me, as a new investor looking for my first property, to work out some deal that helps my mom's situation as well. I could possibly put in the down payment and get a bank loan to buy the house. That gets it out of her name. Then, with the money from the loan, we could invest in two or more properties and leave some cash reserves for paying her bills. It could be possible to find a couple sfr's that would cash flow enough to pay for their own expenses as well as the loan on my mom's house. At least I believe so. Am I wrong?

I am wondering how I can generate enough cash flow to create enough income to cover all the loans as well as a little extra income to supplement mom's retirement income. She could certainly work part time to help manage the properties, at least with paperwork as she is a bookkeeper. I would also want the deal to help me get started as an investor, so I need a little cash flow myself to put towards the next investment.

Does anyone have any tips on how to make this a doable deal? Aka win-win?

@Dave Van Horn Any thoughts on how your concept could help our situation?

@Karen Rittenhouse What are your thoughts on creative structure deals in this situation?