All Forum Posts by: Brittany H.

Thanks Kathy. So my husband and I would cover any assessment charges as well as closing costs. If for some terrible reason, we lost our jobs tomorrow and couldn't make our payment, we'd move back to Wisconsin, live in a home we own there, and rent out the condo in Boulder. My parents would take all profits from renting. 

And thank you so much Teague for the constructive criticism! I really appreciate the suggested plan and think we could totally make that work. But if the numbers don't add up, we'll definitely just stick with something smaller we can afford on our own. We're not trying to bankrupt ourselves over a space that won't be frequently used! And thanks for the heads up on the HOA. I'll definitely dig in deeper on that to have a better idea of what we'd be getting into. Great advice.

Thanks for being so helpful.
I would never take advantage of my parents nor have I ever asked them for assistance. As hopefully soon-to-be grandparents, they've inquired about investing in a property in Boulder as well as having a room to stay in in our future home. We can't afford a 3-bedroom home so I simply wanted to offer an alternative scenario where a 3rd bedroom was viable for them. 

Thanks for the input! Yes, I definitely want to consider all possible angles, including the negative! 

We could definitely afford to buy our own place outside of Boulder. But we'd really like to stay in Boulder if at all possible and also have room for our parents to stay when they visit us. 

Historically, Boulder's appreciation is considerably higher and much more stable than surrounding areas. The city is landlocked and unable to expand out or up due to public lands. During the recession, the Boulder market only flat-lined while much of the country tanked. So as far as ROI goes, it's MUCH better in Boulder but starting prices are also much higher. It's a "safer" bet if the market does turn down again in the near future.

Also, if our parents assisted with the down payment, we'd be able to take our savings and put towards massive renovations, quickly adding equity to the condo. 

Hi everyone! We need your help!

We're looking to purchase a 3 bedroom condo in Boulder, Colorado. Seeing as it's very expensive here, we've considered asking my parents to invest in this home as well, and split the ownership. In addition to 50% ownership, they'd also have their own room to stay in whenever visiting.

We've never purchased a home so go easy on me!

Here are the details:

Listing Price: $600K / 3 bed / 3 full bath condo

What I'm considering: 

Parents would cover the 25% downpayment ($150K)

My husband and I would immediately put in $60K towards renovations. We would do most of these renovations ourselves.

My husband and I would be responsible for 100% of all maintenance/repairs/renovations for the lifetime of the condo ownership. 

We would split the monthly payment (P&I, HOA, Taxes, Insurance) 60% (us) and 40% (my parents).

When we sell the property, their initial down payment investment would be repaid first,  and then we split the proceeds 50% / 50%. 

Is there a better way to structure this? I want to make sure they see this as a great investment opportunity when we present it to them, so I need all the help/recommendations we can get.

If we purchased the condo tomorrow and the value dropped $100K next week, I would want to ensure that my parents recoup their initial investment of the downpayment, but I'm not sure how to properly word that. 

Thanks in advance!