[quote=Mooki]As to the why questions. My mom is no longer living in the house. So it needs to be either sold or rented out. This is a bad time to sell. House was on the market for 6 months and went through several price reductions and still no buyer. So our thought is to rent it out. Mom owes me $25K and she wants to deed-over portion of the interest/equity of the house to pay me back. If we rent out the house, it will be cash flow neutral after taking into account management, maintenance, and vacancy. If/when the market improves in 10 years we’ll try to sell the house again.[/quote]
Mooki, I don’t see how your mom’s bad money mgmt is really your problem. Your mom’s note she signed on this property will never appear on your credit report, even if she gives you a full or partial quitclaim deed. If she owes you $25K, I might let her give me a quitclaim along with her remaining on title but I wouldn’t take title to it alone or get involved in the rental business, since it may only be a break-even situation. If your mom can’t make the payments when the place is intermittently vacant or any PITI/HOA over the rent collected, then you don’t want to be asked or feel obligated to “fill in the gaps” whenever this happens (it could happen often). And you don’t want the hassles of long-distance tenants. Your property mgr there will need to be regularly “fed” to keep everything going and will likely require a 10% montthly mgmt fee, in addition.
Deeding over all or part of her property in this case will NOT “pay you back.” If you take an active role in this property, it could instead cost you $$ and headaches.
From your posts, it sounds like this place is starting to be a hardship on your mom, since she moved out long ago. The $60K “equity” your mom claims to have could just be an illusion. If she truly has this much equity, then she can lower the price further to get enough to pay you and her RE broker off and get out. See if you can talk her into doing this ASAP.
I don’t know how residential RE is faring in GA but in FL, it’s a complete disaster. That’s my .02.
