All Forum Posts by: Will Dougherty

Thanks for all of your replies @Basit Siddiqi  @Ashish Acharya @Eamonn McElroy   I think I definitely need to talk to a CPA. A little more background. My dad has been sick the past 18 months and I put starting my real estate journey on hold until we got him back on his feet. I have put a significant amount of my savings into covering medical costs and bills. I am certainly not looking to be repaid by my parents but they are looking to either sell me the house at a discount or sell it to me and then gift back the downpayment. We aren't looking to break any laws or be subject to tax penalties. Currently, they do not own the house free and clear but they do have a lot of equity. 

Goal wise I am looking to begin a strategy to buy and hold rental properties. This is currently a rental property that my parent's own (not their primary). Ideally, I'd like to come out of this purchase as liquid as possible to move onto the next purchase. It currently rents at $1300 a month and has long term tenants so it is a relatively safe investment. It will need a good amount of work in a couple years but renovated it would be worth 200,000+ and command rent around $1600. The current tenants smoke in the house. Part of the understanding we have with them is that we aren't going to make any significant renovations to the interior of the house as long as they smoke inside the house. It is a trade-off we are willing to make as they are really low maintenance tenants and have been for close to 10 years now. This house will remain a rental property and I will continue to live at home with my parents. My next purchase will be a small multi or single family that I will house hack. 

Thanks again for your responses

Mornin' Don,

Thanks for the comment. I can understand how it sounds a little confusing. A little bit more background. It is currently a rental property that my parents own (not their primary). A little more background without going into to much detail. My dad has been sick over the past 18months and I put a pretty significant amount of savings into helping to cover costs. I certainly am not looking to be repaid however my parents are insisting on offering me the property at a discount (or selling it to me and gifting the downpayment back). This will be a rental property for me and not my primary residence. I will still live at home to save for the primary which will either be a small multifamily or a single family that I'd look to house hack.  

We are certainly not looking to break any laws or be subject to tax penalties so I was wondering if there are any issues we may run into there. I know there is a lot of moving parts here so sorry for the confusion. I am just looking to come out of the transaction in about a year as liquid as possible to purchase another property. 

Hi All, Working on my first deal and will actually be purchasing a house from my parents as they look to free up some cash and are ready to move on from it. We have been researching the best strategy to go about transfering it with the least amount of taxes and interest paid. They have some other bills that they intend to pay off with the money from the sale so I’ll be taking out a mortgage on the house. We are also working on seller financing for part of the cost to lessen the amount needed to hit 20% as we don’t think it makes sense to pay PMI here. basically thinking ill make monthly payments to them over the next 2 years. I am going to purchase the house for less than what it is going to appraise for so I’ll be able to refinance and pull out money this time next year to buy a primary residence (still living at home currently). My question is if there are any strategies or options here that would transfer the house with the minimum amount of taxes and interest being paid? If you were selling a property to one of your kids, how would you go about it? To give you an idea of the numbers.. see below..House sell price 130,000-140,000. 20% down payment. Should appraise for around 165,000-175,000. Currently rents for 1300/mo. Along with the down payment we are working on a monthly number (3-400/MO) over the next 2-3 years to pay to justify them basically giving me 25-30,000 in free equity to refinance out to out towards another property. Hopefully that made sense, thanks in advance for your time/feedback.

Hi All, Working on my first deal and will actually be purchasing a house from my parents as they look to free up some cash and are ready to move on from it. We have been researching the best strategy to go about transfering it with the least amount of taxes and interest paid. They have some other bills that they intend to pay off with the money from the sale so I’ll be taking out a mortgage on the house. We are also working on seller financing for part of the cost to lessen the amount needed to hit 20% as we don’t think it makes sense to pay PMI here. basically thinking ill make monthly payments to them over the next 2 years. I am going to purchase the house for less than what it is going to appraise for so I’ll be able to refinance and pull out money this time next year to buy a primary residence (still living at home currently). My question is if there are any strategies or options here that would transfer the house with the minimum amount of taxes and interest being paid? If you were selling a property to one of your kids, how would you go about it? To give you an idea of the numbers.. see below.. House sell price 130,000-140,000. 20% down payment. Should appraise for around 165,000-175,000. Currently rents for 1300/mo. Along with the down payment we are working on a monthly number (3-400/MO) over the next 2-3 years to pay to justify them basically giving me 25-30,000 in free equity to refinance out to out towards another property. Hopefully that made sense, thanks in advance for your time/feedback.