All Forum Posts by: Grace Park

@Duc Ong

Thanks for your feedback! It's good to know someone has rented out to family, and it's working out for them. I definitely want to go about this in a proper way, so I'm continuing to look into what we need to look out for. If the parents are open to the idea and want to go this route, we'll consult an attorney and CPA at that point. Thanks Duc!

Sure, I know this sounds unusual. Our parents will be retiring soon, and my husband and I were thinking of ways to help support and stabilize them in regards to housing. We understand the existing principle regarding not mixing business with family. However, we believe everyone needs to make a decision that’s right for them based on their relationship with their family. We’ve read a lot of articles and advice online as well as here on BP on what to look out for and be aware of. That being said, we’re considering proposing to purchase our parents SFR rental home that is paid off via seller financing so they get a higher monthly income stream in addition to their SSI. Then we’d have them rent from us at an IRS-acceptable reduced rent (20% below market rent) which would provide more secure housing for them as we’d never evict them and trust them with our property. The reason for renting from us even though they have a house paid off is because their current primary residence is very large and two stories. They want to downsize and have a single-story home but are hesitant to open a new mortgage for a new home. We have a very close, honest, open, and trusting relationship with them. And my husband and I even discussed that if worst comes to worst and they somehow jeopardize the property and other issues occur, we would want to do this for them. Again, to be clear, I am not coming at this from a strictly business perspective of getting highest COCR, cash flow, etc. We will treat it as an investment property, and we’ll still want our minimum financial requirements met on the property we choose. However, we know it’s unusual and wanted to know if anyone has pursued this or done this with a seller financed home. Thank you!

I can't quite wrap my mind around how to ask this question. I tried googling, but couldn't get the right search for what I was looking for. Then I realized I should ask all the experts in the BP community, so here it goes!

I'm wondering if anyone has ever purchased a rental property via seller/owner financing then rented the home back to the sellers as they'd wished to stay as tenants. So I would be paying them a monthly mortgage per our seller financing terms, and they would be paying me monthly rent. 

Have you come across this situation or heard of someone who worked this out? What are the pros/cons or questions I should be asking? Any legal/tax implications from this type of deal?

Looking forward to reading what everyone thinks!

Hi John,

Very interested in this 4-plex. We may be able to purchase with cash if the deal is right. If you have any additional information, please send it to [email protected]. Hopefully we can arrange a call to discuss this property. Thank you!

Grace

Thank you for sharing your amazing success story! I love the before and after pictures, and I especially liked the neat, clear, and concise summary table you provided for your equity and ROI. I noticed the Cash Flow Summary image didn't populate on my browser. I tried different browsers, but same thing. Do you mind posting it again or sending it to me in a message? Thank you so much!

Congrats Steven! What a great success story! It's inspiring and encouraging to see you take the step from analysis to action. Looking to purchase my first deal from Elliott shortly, and I'd have to agree, it's been a very positive experience working with Elliott so far. He has a wealth of knowledge and truly seems to have your best interest in mind. Here's to many more great deals for you and to whatever comes next! Cheers!

Hi Federico,

Very interested in this duplex. Please send over the POS to our e-mail address [email protected]. Thank you!

Grace

Hi Matt,

We're strongly interested in this property. Do you have a property management company that you'd recommend for this property? If you have a couple referrals, I'd greatly appreciate it. Are there any repairs or rehab you anticipate for this property?

Please send any additional details to [email protected]

Thank you!

Hi Todd,

Thank you for all this thorough information! My husband and I are very interested in these properties. We'd love to be in touch to discuss the process for moving forward for purchase. Hope to hear from you soon! You can contact me at [email protected] or here on BiggerPockets.

Thank you!

Natalie and Dave, thank you so much for your quick response! You both truly embody what's so great about these BP forums and community. 

We receive a property tax bill from the county appraiser each year. Dave, perhaps I can talk with you further about the stricter parameters of 1031 exchanging to another mobile home. Since the price of mobile homes in this area here are much higher than the rest of the country, could I potentially purchase multiple mobile homes in another area with just one exchange? Or would I be limited to purchasing just ONE like-kind mobile home with the sale of our home? The reason I ask is because most of the mobile home communities in the bay area have strict regulations that prohibit owners from renting out their mobile home. Due to this, I'd like to look outside of the SF bay area for mobile homes that allow owners to rent them out for some cash flow. 

Please let me know if this is a possibility. Natalie, thanks for connecting me to Dave! And Dave, I look forward to your response!