All Forum Posts by: Christian Riordan

@Sean O'Keefe They bought the property little more than three years ago and only My wife has been living there ever since. Never been rented. There is no formal Arrangement.

Three years ago my wife's father bought her a townhome for 250k cash. They are both listed on title of the property and my wife has been using it and paying primary residence taxes on it. I got a new job out of state and the property has appreciated to 350k and we are looking to sell and move. Her father is on board with the sale and even generously offered to give us a portion of whatever the net sale is. My question is when we sale are we able to get the primary residence exclusion and not have to pay taxes on the 85k profit (100k gross-selling costs)? OR since there is no ownership interest specifically shown on the title would her dad be liable for taxes on half of the profits? Any insight is appreciated. 

Thank you everyone for their insights. Just wanted to post an update a week after I closed on my second property :). When I applied for a new loan, they asked to see a signed lease and a copy of deposit received (I just sent them a screenshot of venmo receipt of payment for security deposit). Even though my rent was $1650 they didn't take the usual 75 percent of it (because there was not two years of rental income proof) they instead just used it to offset my previous mortgage. So I learned that although you can't count the excess rental income to go towards your income, you can still use it to offset your DTI.

I bought a primary residence Exactly a year ago and I have been house hacking the other bedrooms in my house for the last year to save up for another home. I live in a college town where homes go for about 200k  and I have found interested students, got a signed lease, and collected security deposit for the upcoming school year beginning in august. I will be renting my home out for 1650, and my current mortgage is 800(will go up to 1000 if I get a new primary residence and convert my present home into an investment). I’ve got almost 40k cash I make 55k year and have 740 credit score and I’m wondering how difficult it would be to use that rental income to offset the debt of my mortgage and therefore qualify to get a new primary residence, with money to spare. Or should I just buy an investment property and use up all my cash. I would prefer to continue house hacking, and buy another home with only 5 percent down. I know there is a lot of variables. Any insight would help.