Hud For 72k. Inlaw To Purchase?
I looked at a HUD which is really nice ecept for a lot of mold in the bathroom. (I think I can just paint with Kilz???) any way my sis. in law wants to move out of her crappy house and I think I can have her buy the Hud and I finance it. Then have her quit claim to me or at least put me on title for my security. They have crappy credit and a recent BK so no way can they buy. (isn't it interesting when you follow the system you get screwed? school+job+loans=Bankruptcy!) I think I could give them cheaper rent and they would be a lot closer to his job so less gas. I worry about a tenant/landlord relationship with family. I guess if I make things really clear It would be ok. Any suggestions? also if they use their name to buy a hud and then quit claim to me is that illeagal? they will live in it and I'd give them an option on it. I don't want to do anything shady.
Josh
[addsig]
Is this a deal you want or just a way to help out a family member?
There is saying a long the lines of 'never lend money to family'. Consider it a gift and if it comes back you get a pleasant surprise.
I am not saying that you have to agree. Just that sometimes it is the other side that thinks this is how things should be with family.
They obviously have issues with their credit which implies their ability to deliver on financial commitments.
John
[addsig]
I juust talked with her on the phone and mentioned that if they didn't pay I would have to evict or in family situation ask nicely for them to leave. I also told her that I would be makeing a profit and they'd have to be ok with that. I figure if I buy for 75k and lease option to them for at least 85 - 95k I'd be fine. it probably only needs a few hundred bucks of work (solve mold problem, fix peeling vinyl floor) and if they didn't buy I bet I could get 100k or just keep for rental. Heck a payment would be $380 and it would rent for $775 on the low end.
josh