HELP! My Mom is buying house for $210k at $1200/mo Rent

[Taylor Jennings]

How do I convince her not to do this... and instead buy 2-4 houses with a turnkey company here locally?

The $210k house is in her neighborhood, has an elderly woman renting it, and doesn't need any repairs. My Mom says she wants to buy it because she doesn't have to do anything...

PHASE 1

Mom: There is an existing tenant and I don't have to do anything to manage it.

Me: What if the woman dies?

Mom: Then I can resell it.

Me: The house retails at $220k....

PHASE 2

Me: What if the market drops by 10%?

Mom: ....

PHASE 3

Me: This isn't a good deal... You are at 6.8% CAP rate.

Mom: I don't have to pay closing costs. I don't have to fix it up. I don't...(interrupted)

Me: You are paying $210k.......

PHASE 4

Mom: I don't want to have to do anything and I don't want to have to carry a gun to visit one of the houses you were talking about buying.

Me: You will be buying the houses turnkey and have a property manager who is currently managing 1,000+ houses in Indy... You won't ever have to look at the house.

That is the conversation in a nutshell.

How else do I convince her not to do this?

She says the $210k deal is less risky...

We are talking about my Mom's retirement money! I flat out begged her in the middle of a restaurant not to go through with the deal...

I'm speaking with my Turnkey people at 2:30pm today to get some options.

[Tim G.]

Good luck I wish you the best.

I don't even speak with my family about investing anymore, they aren't interested and its not worth my time.

Most importantly though you must listen, my parents also never wanted to risk anything at an older age. So the perceived security in this investment is probably giving her the warm and fuzzy's