All Forum Posts by: Michael Cavicchi

Yes my concern would be that the note gets counted as an asset (which I assumed it would) and at that point is needed but not there.  I'm not sure if we could somehow structure it to be considered a monthly income instead.  

I don't want to go over 10 years on the loan and ideally would go to a bank after it's up and running.  But if the money is cheap then obviously riding it out might be the best thing to do.  

The system is just frustrating and confusing and obviously I have no idea what will actually happen.  He could never need a home but it's looking like a possibility for sure.  

So I know this situation is probably not unique but also probably not entirely common.  I plan to seek help from both a tax professional and a lawyer but figured I would see if anyone on BP has any information or knowledge about it. 

So my parents are separated in age by 14 years and my father's health is declining a little more rapidly than expected.  He was the one taking care of everything and now I've been approached to by my mother to help run their finances.  They have done pretty well with investments and retirement accounts and she would like to keep it growing and reinvest some of it.  

We are discussing the option of them writing me a mortgage note for an investment property.  Obviously they get to keep their money growing (hopefully with little risk) and I'm able to use their financing to grow my business.  Seems like a win win?

But if my father were to go into a home in the next 5-10 years what would happen?  Would the note count as part of the assets?  Could it essentially become due by me almost immediately? Should I not consider going down this road? 

Trying to do as much homework as I can before pursuing anything.  

So I haven't been the best 'landlord' or 'investor' so to speak.  I currently live in my own three family house.  I have been renting to tenants since I have owned it, October 2017, that happen to be section 8.  Due to the fact that I would like to get into that side and renovate, I decided I was not going to renew their lease when it ended Aug. 31st.  I gave them notice (verbally and through letter) of this back in April because they have kids and I was trying to be nice about it. 

To be fair, they have been looking (confirmed by housing authority), but they did not find a place by the end of their lease (I won't get into the obvious reasons why).  Housing authority needed me to say it could go month to month so that I could receive the money despite it saying so in the lease.  

I am trying not to have this drag out forever and Housing Authority told me just give them a date.  After that it's up to me to evict them.  I'm thinking of saying I need them out by Jan 1st.  Is there anything I need to be aware of in this? If they stay past that date and I start eviction proceedings do I not get the rent at that point? Is there any obligation on my part to let them stay because it will be mid winter?

@Edward Schenkel

Do you have any mortgages on the house?

I would have to agree that single family you are on your own and any sort of multi family situation where the driveways aren't separated you hire it out. This is really the only way to have it be hassle free for both you and your tenants (although there are times the plow truck driver doesn't show up just like any contractor).

Sometimes you can get one of the tenants to do volunteer to do it for a cut off the rent but when they move out you're going to be scrambling to find another person who is willing to take on that task.

 Igor I think you can find this but it's definitely find this but it's not going to be in the best neighborhoods and it's going to be properties that are probably going to require some work (or maybe learning to leave some things alone). 

I think that as has been reiterated it really depends on what you want and what you are comfortable with.  CT is certainly not exploding right now in terms of popularity but people are here and they are investing. I don't see houses sitting on the market for very long unless it is way over priced by the seller. And in some cases I've been pretty surprised at how much things went for. 

I think when the inventory of foreclosures was high it was possible to do this 5+ years ago.  I tried the same strategy about 2 years ago now and yeah I found a few that I think would have worked.  Like you though I was hesitant with my renovation costs.  At some point you really just have to jump in and do it.  Until you do it kind of just feels like playing a game of monopoly.  

But to everyone's point above you really have to work on finding the deals that aren't on the MLS which can be much more challenging but obviously that is where the 'homerun' deals are going to lie.

Thanks guys I appreciate the replies! Have learned a lot from inheriting tenants so far.  Can't wait for the day I get to pick them lol.