All Forum Posts by: Frank McSorley

Pretty good read-"End the FED" by Ron Paul.

Jon, thank you so much for all of the info. This will be a huge help when we talk to the lawyer next week. We are planning on getting a VA loan (I'm retired military). It's definitely a triplex and will remain that way. We just both figure if we are going to do it, now is the time. House prices are way down and 15 year home loans are under 4%. We have oustanding credit so that shouldn't be a problem. Again, thank you so much, you've been a big help. I'll post what we decide to do and how we are doing it once we figure it all out.

Jon, thanks for the quick and in-depth reply. This looks like it is a whole lot more complicated than we thought. We are seeing a real-estate/tax attorney next week.What we are looking to do is this:
-Mother-in Law gives the house to her two children. ($650,000)

-Sister buys out brother ($325, 000)minus half of what is still owed on current mortgage ($100,000/2=$50,000)

-Sister, of course let's mother keep 1st floor apartment, but now 3rd floor rent goes to Sister instead of Mother.

-Sister and husband(me) remain in 2nd floor apartment.

-We pay off house in 15 years and have rental income for retirement.

I guess this is all a lot more complicated than it looks due to tax issues. Sorry, I'm new to all of this. Thanks for your help.

My wife and I are considering buying my Mother-in-Law's 3 family house in MA. She's retired and no longer needs the tax advantage of home ownership. My wife and I make around $120,000 and have been getting killed on taxes the last few years with an empty nest and no deductions.
Basically what we'd be doing is an early inheritance. The house is worth around $650,000. My Mother-in-Law still has a mortgage from when she bought out her sister several years ago for around $100,000. We would take out a Mortgage for around $400,000 to pay off my wive's brother (his share of the inheritance) and pay off exisisting mortgage. My Mother-in-Law currently lives on the 1st floor, my wife and I live on the 2nd floor and we rent out the 3rd floor. Are there any downside or hidden traps to this plan?