- July 31, 2008 at 5:54 pm #261131
I’m sorry I can’t seem to keep everyone straight on the list yet. But instead of letting the house go to foreclosure, why not turn it into a rooming house?
My 21 year old daughter lives in a womans house that has kept her house as a rooming house for years, ever since her divorce. She wouldn’t have had the money to stay in California if she didn’t do this. It works well for her. She only rents to older career singles. My daughter got in because they work together and she knew my daughter to be very responsible for a young girl.
If this house was rented to young upwardly mobile people, their rents would cover most of the monthly payment, if not all. Then with rental lease agreements in place on all of the tennants, the house could be re-financed at a fixed interest rate. Even though the house is not in a place of equity now, it wouldn’t be the owners own money paying it off. So in 20-30 years the house would have plenty of equity. Their shouldn’t be any capital gains or rental money to claim and pay taxes on if the money taking in is at or just below the actual payment.
If I had a house in California I would absolutely do this. I wanted to the last time but since I wasn’t willing to buy a normal house in California we bought a new manufactured home instead. The park was a family owned park which meant that we could not rent it out. We had to sell when we left. Our daughter was only 18 at the time so my husband didn’t trust her to live there with 3 of her friends. We should have done that! While the house prices are going down, the manufactured homes are going up. We actually profited from our sale.
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