All Forum Posts by: Bubba McCants

Bubba and Don! Welcome to the best networking site in the game! So many great folks with stories and knowledge to share. PCB is a great area to invest, Ive done a fair share of deals in that area myself. 20+ years, WOW! There's something to be said for anyone who can stay in any industry for that long. Kudos to you and all your success! Happy to connect!

Hello everyone!  I am an investor with a background in syndicate investing and long term rental.  I am here to learn more and explore down the rabbit hole!

Hello everyone!  I am an investor with a background in syndicate investing and long term rental.  I am here to learn more and explore down the rabbit hole!

Hello, 

I'm a new interested investor from Auburn Alabama. I just joined Bigger Pockets to learn more, gain greater skills & insights, as well as share new properties on the market. I'd love to meet and learn from any or all of you!!

Carol Stark

Bubba,

I remembered helping my client sell his house a month after his son graduted from college. He said it was the best move he made as he walked away with a big check from the appreciation from the house his son lived in for free. 

I recomend getting the lowest price new construction house near the college your sons are going to. A 4+ bedroom will be great so they can rent the rooms to other college students in the area. There are websites where you can list the share rooms for rent.

If you can't find a new construction house try to get a house built 2000+ year to avoid repairs as much as possible. I will also take out all carpet if any and replace it with LVP floorings that way when you are ready to sell it you will only have to paint the house and minor repairs to put it on the market for sale.

I hope that helps.

Best regard,

Lily Rodriguez - Investor friendly Broker

Best practice is to advise them to get counsel from actual professionals; estate planning and planning in general is not a great DIY hobby it would be beneficial for you to have contacts like attorneys, accountants and advisors to refer your clients in this case.   

Reading the basics and thinking you know the answers is very dangerous in my opinion.  

Jonathan Bock, CPA 

@Bubba McCants

Of course, best to consult a qualfied professional or two..

Via a Will, the house will need to go through probate.  What is "best" is what fits the family's requirements.  A Life Estate has its benefits, but also its cons.  For example, it can't easily be undone, it limits ecumbrances to the Title or I think selling for that matter.  So what if the mother has to move?  The property I think is stuck until she passes.

Other alternatives usually include Trusts, even Transfer on Death deeds if available in your state.  There are plenty of techniques to avoid probate, but they each come with their pros/cons and associated costs.

Sorry, good luck.

IMHO there’s nothing else to do. Definitely don’t put it in the son’s name before her passing. If it was a gift he’d inherit her cost basis and owe capital gains tax upon sale that would have disappeared at her passing. If he was to be sued while she was still alive her house would be at risk. 

You could check to see if the property is in a state that allows TOD. That way you’d avoid probate. It’s also totally reversible if mom’s worried about “giving her house away”.