All Forum Posts by: Jeremy Clarke

Andrew Johnson the upside down part is a combination of the Atlanta market still trying to recover from the housing market crash and way to many refinances and double mortgages. I certainly don't want to put myself in a bad financial state either so I wouldn't want to pay more than the place is worth.

Greg S. while I don't disagree with you, I grew up in this home. My mom bought it a month to the day after I was born. Unless she decides she wants to leave the area, I wouldn't put her in an apartment I'd try and find a way to keep her in he house (somehow). She doesn't have much but she has the memories of us growing up in that house and i don't want to take that away unless it comes to it.

Hey Rick Rucker my mom is 58. I've never heard of this program but I am certainly interested! Sounds like it could be a nice alternative.

Thanks Mindy Jensen ! I do have a sister but she wouldn't be able to help unfortunately. I like the idea of just working with an attorney / title company.

I'd be in a similar situation with rents. Thanks Nick Watkins !

Good Morning BP community! My mother, who lives in Powder Springs, Georgia in the Atlanta area is in need of a bit of help. She has a part time job and has struggled to get anything full time. She isn't in the best place financially and the house I grew up in, that she's owned for almost 30 years is almost upside down. I can't just "give" my mom money all of the time, she won't accept it. But I am considering purchasing her house from her and then she can pay me what she can afford every month. I have two questions. 1) Has anyone ever purchased a house and then rented to a family member, if so, has that experience been more positive or negative? 2) What are my options in terms of transferring the title / ownership of the property? I'm guessing it obviously wouldn't need to be listed on the mls... Ultimately I'm hoping I don't have to buy her house but if this ends up being the best option do my mom has a place to live, I'm certainly going to seriously consider it.

Thanks Rick S. I think that post is a great resource for newer investors. She mentions 5% but I like the fact that she caveats the fact that you should use your gut as some properties could require more if not in good shape.

Andrew Johnson good advice and definitely understood, I knew I'd get a bunch of opinions but I that's okay. I have sort of adopted your approach actually as well. Eugene Kemp one property is 1996 and the other is 1947 (with some known plumbing issues). At some point I will have to either sell it or will have to replace the sewer line. That ones not cheap either...feels a bit like a "time-bomb" as my line is made of concrete, yep you read that right. It's made me consider selling more than a time or two.

I was talking to a friend last week and he is interested in buying his first investment property. I have a couple and he started asking me how I budget for those properties in case of emergencies. It made me wonder, "what do other people do"? So I'm asking you BP community. How much money do you set aside for your rentals in case something goes wrong? Is it a dollar amount? A percentage of what the house is worth? Any thoughts are appreciated!

Hey Mike Douglas thanks for chiming in and good point. I don't disagree on any of your comments. My comment stemmed more from vacancy rates and cash to cover your mortgage. Like I said to Connor Maloney , run your numbers and see if they make sense then move forward. I'd also say that it depends a bit on your level of investment. If you put 20% down your cash flow might be slim. If you had a little more say 25% or 30%, the numbers get better. Challenge is, 25% or more is quite a bit for most.