Investment Info:
Single-family residence buy & hold investment in La Crescenta.
Looking for help...mother in law owns and is trying to retire. She cannot afford the mortgage, looking at creating one or two ADU's to cover the mortgage and allow her to stay in the house without paying anything out of pocket.
What made you interested in investing in this type of deal?
Mother in law lives in fantastic neighborhood in La Crescenta, California. It is about 20 minutes from downtown LA but is in a great neighborhood; public schools are all 9/10 blue ribbon winners. She has about 50% equity in the home and is trying to retire. The problem is she cannot afford to retire and keep the home.
My wife and I are trying to come up with the best strategy here. Do we purchase and use gift equity as a downpayment for our first home? Do we refi with her and pull out
How did you find this deal and how did you negotiate it?
Still working on best solution, wont be able to move forward without starting my job again (im currently furloughed).
How did you finance this deal?
Looking at purchasing with 50% gift equity so we can use the equity as 20% down payment to get out of PMI. Also looking to possibly add one possibly two ADU's to rent out and create cash flow.
How did you add value to the deal?
Looking to pull out equity and build one possibly two ADU's to rent out.
What was the outcome?
In the process...
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Not yet...working with lender via referral.
I will update everything as/if we move forward.
