I have a deal on the line with an older gentleman (70) in poor health. It doesn't sound like he has any heirs, and is looking for living expenses until he passes. ($1300 mo) Zillow offered him $160k for the home(3bed/1bath), but he feels it is worth a little more due to some additional structures on the property.
I'm trying to figure out how to structure this. I'll involve a local property attorney if this works out; but I'm thinking the deed should go into a trust vs just being willed to protect myself as the investor. Not having a stockpile of cash to fund his 1300/mo would a reverse mortgage work to fund a trust which would payout the current owner until his passing? Once that occurs I would refinance the house into a new mortgage to pay off the balance of the reverse. Other methods to structure the deal that I'm missing?
I thought about a regular mortgage but the stockpile of cash would have to payout twice a month and would cut the timline down drastically. (interest, owner expenses, and mortgage payment.)
Thanks,
-Les
