New answers tagged

1

If (and only if) your sister wants to become a landlord, then she can buy the house however she wants, and rent it to whoever she wants (presumably your mother, in this case). She should charge the tenant (your mom) a fair market rent. I hope your sister is considering all of the other expenses and aggravation that go along with being a landlord like taxes, ...


7

The best way to look at it: Imagine it wasn't your sister buying the house, but a total stranger. So some stranger takes $80k of their own money and an $88k mortgage to buy a house, then they rent it for $1000 a month to your mother. Since your mother doesn't have that money, she pays $500 a month, and your sister and you pay $250 each. Would you agree to ...


2

The bottom line is there is no "fair" in this case. You are not obligated to contribute to your mother's living expenses or is your sister. However, either one of you may choose to do so out of the goodness of your hearts. Depending upon the actual age of your "aging" mother a home may not be a good idea. It may be a very short lived ...


2

Your sister is taking on more risk so it makes sense that she get a more substantial share of the gain. There are a lot of other questions to ask. Who is paying for repairs/insurance/new appliances/etc? There are also contributions that aren't financial (time/energy for DIY repairs or effort in dealing with contractors/shopping for new appliances, etc). When ...


10

She would like for my mother to pay her $500/month (as a tenant) That is the key. has asked me to contribute $250/month since she is the one "taking the risk" of owning the property What she is really saying (whether she knows it or not) is that she wants her mother to rent the house for $1000/month, and for you and your sister to pay half of ...


2

My question is: is the 10% of yearly revenue a reasonable amount to target in savings with an eye towards improving the properties? That's impossible to answer, because it depends on the location. A landlord's revenue is rent. The problem of using rent as a basis for saving towards renovations is that: Some locations have a high rent to house price ratio, ...


0

you need to figure out your incomes from the properties, at a realistic level, and then add this to the rest of the annual operating costs. make sure you and the other partner in this venture at the bare minimum have an LLC in place. The LLC holds the insurance and all other regular expenses in its name, so that both of you are protected from liability, ...


11

There's no set rule that I've found to be very agreeable. You can budget by taking cost over expected life of each expense if you like, but it takes a fair bit of work and has to be updated with some frequency. I've had appliances far outlive their expected life and others not make it half as long as expected, so while it might average out I found it not ...


16

The answer to the question how much you need to save is: It depends. You need to do an analysis of each property. Roof, appliances, heating/AC, water heater, sump pump, repaving of the driveway. Your list will be specific for each property. You need to estimate how often they need to be replaced, and how much useful lifetime they have left. You will also ...


2

It may be not that bad. If you have a history of good business with the firm, a tenant that is related to the Agent has rather small potential of things messing up. Maybe, just do everything as usual. The disclosure of the conflict of interest is good. Your agent could as well not tell you that they are working with close relatives and just close the deal. ...


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