Hey Everyone,
I am in college. I have been listening to podcasts on my commute to school. I bought my first duplex a few weeks ago and rented both units out yesterday.
Here is my finance situation:
I'm in college and cannot get traditional loans for rental houses because lack of steady income. I do not want to sit on the sidelines for 1-2 years until I am "approved" for a loan. My parents have access to borrow money, and are willing to get the money for me. That's a great opportunity, but the loans, deed, taxes, insurance, etc is in THEIR name. What potential problems do you all foresee down the road for future financing? Is there a way to transfer the deed into my name? Can I claim "my" duplex on taxes or not, since it's technically in their name? Can I buy the houses back from them for $1,000 just so its mine? (capital gains tax comes to mind, though, if I ever sell it) But I'd hate to own 4-5 houses by the time I am able to get a loan on my own and have no way to prove that they are, in fact, my properties (when legally they are my parents.) Any sort of thoughts, ideas, advice would be greatly appreciated!! -Tim
