I think this could be a Real Estate opportunity?


Hi all!

Seeking some advice about home ownership/real estate situation. So, here’s the skinny: my fiance has a house in Suburbia that we currently live in f/t. (My sister lives in my TH in the city). My mom wants to sell her house and gallivant around the world. I would like for us to buy her house; it’s in another area of Suburbia, has more value than ours, and she owns it outright. I want the SO to sell his house and we could move into my mom’s. Problem is he doesn’t want to buy my mom’s house, he wants to get something ‘new’ when we move. My thinking is that in our current financial situation this is a great move because my mom owns outright, no banks involved, neighborhood is better, better schools, etc. Her house is valued maybe around $30k more than ours.) We could give her a large portion of the sale from his house and negotiate something monthly privately with her while getting away from a bank mortgage. THEN as our situation improves (financially) we could go to the banks again (ugh!) and then we’d still have this house where we could either rent (preferable) or sell. I just want to frame it in a way that really makes the most valuable sense instead of just, I want to keep our home in the family type of thing. Does this make sense? I mean, I viscerally feel like this is a great opportunity but I’m not sure how to articulate it in a way to convey that strongly. UNLESS I’m seeing the whole situation wrong!
Any feedback is appreciated!! Thank you in advance for your thoughts :slight_smile:


Lots going on in this situation. I agree with @Mrs.Groovy that you have to be careful mixing family with business. But I’ve also had lots of good situations borrowing money from family without awkward holiday dinners. I think the key is to treat it like business and make sure everyone (you, your fiance, your mom) see it as something that meets their needs independent of the family dynamic.

And with that said, meeting everyone’s needs was the part that seems unclear to me.

Your fiance wants to buy something new. Why is that? That one needs to be talked about and explored first. And you want to buy your mom’s house. But is it a good deal? It’s more expensive and you could potentially get seller financing, but how will it move you forward in your financial life? And why not just keep what you have?

And if you do buy her house because it’s a good financial deal, why not just sell your town house in the city? Or sell both yours and his? Or why not buy hers as a rental and stay in one of the current houses?

Those are just initial thoughts. There is a lot to think about.

I personally like starting out with house hacking or live-in flips if you’re going to buy a house. As I showed in The Ultimate Battle of Housing, the cost of buying a regular old house instead of one of those can be hundreds of thousands of dollars in missed opportunity.

Good luck!


I agree with the comments here. Family relations involved can provide limitations in financial or personal aspects in both of your life (you and your mothers). Personally I would look at it more as a business opportunity then a quick deal to make because you know each other. Like, for how much would you buy it? Is the property worth this money? Can you claim full ownership with your SO?

Never make a deal on relations only, but set up some rules and guidelines which all has to follow. Once that shows success for all, it might be a good deal. Otherwise I would look for something else.