[quote=livinincali][quote=FormerSanDiegan]
b) Take a loan for 75K and have immediate cash flow of maybe $600 – 700 per month.
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I forgot about that aspect of the deal as well. You aren’t even cash flowing. You have to wait until the end of the deal before you see any money.
Probably best to just advise your client to move to a lower cost of living state. Albuquerque, NM might be a good option. Property taxes are low you can get a condo for < $75K. Climate is pretty nice year round although it is at elevation. You aren't staying in San Diego for the kids or grand kids.[/quote]Agree, but I feel that OP's "client's" condo isn't even IN SD County, whether she currently resides there herself ... or not. It very well could be in ABQ. If it was located in a CA coastal county, she would be able to recover much more than $75K at this late date if she sold it.
It’s not very common for an 81-year old (esp one with limited means who would even want to “buy” a “life estate”) to have an outstanding mortgage on residential real property they own.
Persons with means would have already bought their “retirement” home long before reaching the age of 81.
