All Forum Posts by: NA NA

@Stephanie Medellin - What if we gifted them $56k and they just take that and use it for a down payment? 

It wouldn't officially be a gift of equity.

What if i put my son and his wife's name on the title now and then I transfer ownership via a quitclaim?

What about a quit claim? Can we do that and our son will take everything over?

Hi, I'll try and keep this short, but I'm a little clueless.

Backstory

I own a rental property that I want to sell to my son and his wife. The property is worth around 100k, but I only want to sell it for 40k (the remainder of the mortgage).

The problem is that if I give it to them for 40k and they ever sell it, the capital gains taxes would be significant.

Is the following a realistic scenario?

1. My wife and I gift them $56,000. Using gift tax rule, we can each give them 14k in a given year. So 14k x 4 = 56k.
2. We sell the house to them for $96,000.
3. They use the $56k as a down payment.
4. Leaving them with the $40k mortgage.

Again, I'm in over my head here, so I don't know if this is even feasible. 

Any help would be greatly appreciated! Thanks.

I’m new to this so I hope this doesn’t sound stupid. Two years ago I rehabbed a house and started renting it out with a rent to own contract. We agreed upon a sale price for when the buyer is ready to buy. The reason they wanted to rent is because their credit score was on the borderline of being able to get a decent interest rate and they wanted to improve their score before buying. Anyway, the sale price we agreed on is now somewhere between 10-20k over market value of the home. My question is this, if my renters are ready to buy, will a bank give them a home loan for a price that much above market value? Or do will banks only give loans for prices closer to the appraisal value?

Thanks for the help, sorry again if I'm clueless.