Buying A House For Parents For Fun and Profit

Eventually I would like to be in a position to buy my parents a house as they helped pay for my education and raised me and such. What is the FWF method of buying a house for parents?

Let's assume for the example that the parents are renting and will continue to make similar monthly rent payments to you. Your role as the affluent child is to make the downpayment, use your income to qualify for the mortgage, and perhaps allow them to rent at a slight loss to you. For example if their rent now is $1k per month and the mortgage/taxes/insurance would be $1200 on a house you buy then you eat the $200 monthly loss.

The profit part comes in when they die and you now own the house without probate or estate taxes. Also profitable when you depreciate the investment property from your income taxes every year.

An alternative to buying it solo would be to form a family trust. I dont know much about these but this may be worthwhile in a state with limited creditor protection. Such that you dont actually own the house. I am not sure how this affects taxes and depreciation.

Has anyone done anything like this? What are some suggestions? I am sure a lot of FWFers are affluent and would like to take care of their parents in their old age and still make a profit in the process.

Have them take in boarders, cook meals, clean & scrub on their knees, wash cars for money in the driveway, take in children for daycare, and raise their own food in a victory garden in the back yard.

Swivelguy said: How is it a favor to them if you rent them the house at whatever their current rent is?

The house would be of a much much higher quality residence then the current apartment. Perhaps that wasn't apparent when I estimated their rent at $1k now and my mortgage payment to be $1200. In reality it would likely be a shift from $1k to $1800 or $2k and I would eating $800 to $1k per month.

I just finally realized that every "Fun and Profit" thread belongs to BBB.

mmusone said: tripleB said:
The profit part comes in when they die and you now own the house without probate or estate taxes. Also profitable when you depreciate the investment property from your income taxes every year.


If you buy a house with your own money and rent it to _anyone_, when that person dies you will own the house without probate or estate taxes

Yes of course. The alternative would be if your parents owned their own home, and you helped them make payments, then the home is in their name and even though you may have made every mortgage and tax payment for the last 10 years of their life, it now goes through probate. Thus the reasoning behind you owning the home or perhaps putting it in a family trust.

This can go two ways, check back tomorrow to see the winner.

A)The profit part comes in when they die "Killing your parents for fun and profit"
B)I would like to be in a position to buy my parents a house... parents are renting and will continue to make similar monthly rent payments to you"Buying someone a house--to rent to them for fun and profit"

scottxmso said: BBB wants to BUY a house for his parents? What happened to renting forever and never owning a house?

That thread was started on a Sunday. This one was started on a Tuesday. I don't think there can be any other explanation.