[quote=DWCAP]My parents did this. They bought many properties in Santa Barbara back in the day, with two houses (side by side) for their sons. My brother bought his in 2001, just before the market went on a tear.
Problem is, the house isnt huge, and two growing girls take up alot of it. (Not supprisingly the biggest problem they face in a house full of girls is that there isnt enough closet space.) But he is kinda stuck because he inherited my dads property tax. It is STUPID low. . . (it doesnt help that he is underwater on a condo he bought as a rental. It is sucking up his extra $$)
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Hijack: DWCAP, if the lot is big enough, you can suggest to him that he add on a room addition to make the house work better for his family.
If he’s short on cash and needs to free up $$, suggest to him to wait for his tenants’ lease to expire and not to renew it. Entice the tenant to remain month-to-month by crafting a *new* rental agreement lowering the rent with the provision that tenant will keep it ready to show with 24 hrs. notice. Then “strategically” default on the condo while possibly collecting rent and then list it as a “short sale” before the NOD is hung. The lender will be more willing to “play ball” since he’s in default. If it doesn’t sell, he will have to let it go.
(Before he does this, tell him open a credit acct. with Home Depot or Lowes so he can get 6 mos. 0% int. on building mat’ls).
He’s in a good place with Prop 13 benefits. Who with a family to support would want to mess that up?? Won’t his credit have time to recover before his kids leave the nest?
This may not sound too “moral” but lots of folks seem to be getting away with it. It’s just a strategic maneuver to think about.
