🔺 r/personalfinanceuIntelligent_You7584·33 days ago
Buying family members house and letting them continue to live there while paying reduced rent
I have a family member who is retired, living off of social security. They are struggling to survive with the current rate of inflation, repairs on their property have been put on the back burner due to their lack of ability to pay. They have investigated reverse mortgages but feel their only way out is to sell their house (which they own outright) and moving into a retirement community, paying rent with social security and proceeds from the house (unknown how long that could last). I was thinking I could purchase the house from them and let them live there paying a small amount of rent. Upon passing (grim to think about but 10-15 years is realistic) I would then fully remodel and either rent or sell. While this is intended to help family, I’m not considering it charity. I would plan to make some money on the transaction. The house has been smoked in for 30+ years (making it realistically a gut job to remove the smell from drywall and insulation) and outdated, without central air. With this known I would estimate the value of 75-100k when remodeled l value close to 220k. Am I just being naive with this idea? Are there any glaring issues I’m not considering? submitted by /u/Intellig…