Purchasing My Grandmothers Home

[Chris Bell]

Hello All! My grandfather recently passed and my (paternal) grandmother is looking to sell her home. My mother lives on a fixed income and is currently renting an apartment. My plan is to move my mother into my grandmothers home after purchasing it. I’ll let her rent it from me (At and extremely low rate that won’t cover the new mortgage, but again, it’s mom!). 

I’m trying to go about the best way to purchase this home from Grandma without realtors. I’m in North Carolina. Because of the new “CARES ACT” I believe I’ll be able to pull from my 401K penalty free to buy the home outright. 

I may also consider financing the money from a private lender.I want to know what I need to do in order to make this transfer smooth and seamless (if there is such a thing) without having to get realtors involved.

Thanks in advance everyone!!

[Joe Splitrock]

@Chris Bell be aware that renting below fair market value to a relative would disqualify the property as a rental property, which means you cannot claim expenses. This is to prevent people from buying a property for a relative to live in under market value, to generate a tax loss. 

https://www.irs.gov/taxtopics/tc415