Expert: Hans Weber, Licensed Broker Associate - 3/10/2009

Question
My fiance and I are interested in buying half of her parents two family house.  Her parent would then own half and we would own half.  Her parents are very much into the idea and are willing to work with us.  My question is, is this possible and how do we go about doing so?

Answer
Hello Justin,

Thank you for your question.  Sounds like a great opportunity.

The easiest way would be to buy half of the house and pay cash and add new owner/s to title.

Owner financing is a second option, but I see no benefit to the current owner.  They might as well just collect rent unless a major cash downpayment is made.

The only way to do it with bank financing would be for parties to refinance the house and get a mortgage together and add the new name/s to the title.

The only drawback in this plan would be if someone's plans change.  What if the parents want to retire and move away?  What if you have triplets and need a bigger house?  You need to think of these scenarios in the future and how you will handle them.

Good luck,

Hans