L/O or Sub2 - Family Home: Dad selling to Me..

Hello everyone…

I lucked on this website by google…I’m glad I found it…

I need some advice…

My dad wants to get ride of our old family home, which my grandmother still lives in,…he wants to sell it to me for 27K. It was appraised about 3-4 years for 47k. So it has equity.

I was thinking that maybe doing a Sub2 would be bettern than a lease option. I’ve read on this site that doing a Sub2 for your first deal isn’t a good idea?? Any comments about that?

…also I would still want my grandmother to live there she pays 200 dollars toward the mortage and my father pays the other 160 bucks.

Any advice would be helpful…thanks

you could do either - a subject 2 or lease option! In this case, I would probably say get the deed…it is amongst familly. This way you can refinance it pretty quickly and get it out of your dads name - maybe reduce your payments lower than $360 - and then you won’t have to carry two insurance policies to avoid the due on sale potential problem. So your deal will be to pay the $160 per month for Grandmother to live there? Is that until she passes away? Does it need work? It might end up being a drain for you if it has not been maintained - ie. roof, furnance, etc…
Good luck.

Wendy Patton

I was thinking last night, before I went to bed, that maybe I could get my father to refinance the home and use the money to setup a trailer for her in the same community since we own most of the land their anyway… and then we would rent out the house to family.

We have alot of new people moving into the county every month and I’m sure the mobile homes are begining to become full up so this would be a good time to set up some rental property or even a L/O for those who want to purchase a home.

Right…the deal is that I can pay the 160 for her to live there until whenever… more than likely until she passes. The house is in great shape.

So with the Deed…I don’t think I would be able to get it refinanced myself because I’m not employed.