Rental house near son

[Tybee]

Am starting to consider buying a rental house near my son in Indiana. He has remarried and has a new baby, and while I don't want to relocate there full time at this point, I would like to have a presence there, and maybe a rental house that we could sometimes visit and work on and then re-rent. Ideally, I'd like to be able to see him once or twice a year, but if it's a rental, that might not be possible.

I found one that I am considering because it meets our needs. His suggestions are ones in town where he lives, but I don't think I'd ever want to live in town where he lives. This is out in the country but near his work, so a good rental market because of the plant where he works.

Any thoughts, positive and/or negatives that come to mind?

At one time, this was my dream, to have one rental near each son, then leave it to them in my will. But two of them live in ridiculously expensive areas, and this is the only halfway affordable one, and only if I buy something tiny and/or foreclosure.

This one is a foreclosure.

[iris lilies]

Do you have to take out a mortgage For this?

[Yppej]

As I recall you moved to Maine to be near family and then regretted it. You preferred Michigan.

This has the advantage of being in the Midwest which you like. The unknown is the family dynamics. How long has he been remarried? What is your relationship with his new wife like?

If family were not a consideration where would you want to go?

[Tybee]

Do you have to take out a mortgage For this?
Maybe? Small one?

[Tybee]

As I recall you moved to Maine to be near family and then regretted it. You preferred Michigan.

This has the advantage of being in the Midwest which you like. The unknown is the family dynamics. How long has he been remarried? What is your relationship with his new wife like?

If family were not a consideration where would you want to go?
If fam were no consideration either michigan. Or sc

[iris lilies]

Maybe? Small one?
I don’t understand this scenario. Do you mean that you would continue to live in Maine, but would take occasional vacations to Indiana?


But then I don’t get the whole concept because I thought your financial situation was very tight. Has something changed?

It’s only a good idea if you have crap tons of money and wish to spend down your assets. Then, I can see buying a little place that would be comfortable for you to stay in when you make extended visits to your son. Maybe renting it out as an Air&BnB when you’re not there MIGHT be viable, but you really have to run the numbers to see because so often these things are not viable.

You can have the same experience just renting an Airbnb when you stay in the same town as your son.

You and Catherine both have this idea of leaving a “HOME” to your kids, but neither of you have any idea how much you will need of your own assets as you age. Didn’t you recently say just a couple weeks ago that you felt no financial obligation for anyone after your death? Perhaps I misinterpreted that. And doubly confused I am because you’re interested in buying a house but not in the town your son lives in, but you have an idea of leaving it to him when you die? Why do you think he would want that particular house?

Finally, everyone and his brother jumps on the list of foreclosed houses like vultures. Maybe you can get it maybe not, but the odds are that there’s 20 other people eyeballing that same property with ready cash to plunk down.

[iris lilies]

Tybee, is your mother still alive?

[Tybee]

Tybee, is your mother still alive?

Yes.

What is a Walter? Did you mean vulture?

[Tybee]

I have successfully bought and sold four foreclosures, so have some experience there. It has always been cash, though.

[iris lilies]

Yes.

What is a Walter? Did you mean vulture?

yes, sorry. I will correct.

[iris lilies]

I have successfully bought and sold four foreclosures, so have some experience there. It has always been cash, though.
We need to more information about the financial aspects of this. Do you anticipate coming out ahead, or at least not losing? I mean what kind of financial deal are you thinking this would be?

For me, I dislike having a whole bunch of equity tied up in real estate. Our real estate holdings are 15% of our assets ( after our city house sale goes thru next week.) I just do not like real estate. Am waiting to realize a profit on real estate, has never happened—-yet.

[Tybee]

We need to more information about the financial aspects of this. Do you anticipate coming out ahead, or at least not losing? I mean what kind of financial deal are you thinking this would be?

For me, I dislike having a whole bunch of equity tied up in real estate. Our real estate holdings are 15% of our assets ( after our city house sale goes thru next week.) I just do not like real estate. Am waiting to realize a profit on real estate, has never happened—-yet.

That's interesting about the 15%. When we were in Michigan, that was about what we were at. Maybe 20%. Unfortunately, we had to move out here to care for parents, or we thought we did.

We aren't sure where we want to end up. We can't sell this place until we have somewhere to go. The rental house could temporarily be that, and let us sell this one, then regroup.

[rosarugosa]

I don't have a lot of experience buying and selling real estate, but the idea of buying a house in a place I didn't particularly want to live so that I could visit twice a year doesn't seem sensible to me. I think it makes a lot more sense to just stay at a hotel or Air B&B or something.

[Tybee]

I hear you. I think this has to do with wanting to feel closer to the grandchildren, and wanting to support my son some how, emotionally, not financially.

[Teacher Terry]

I have owned 10 homes. Some made money and some lost. What you are considering makes no sense to me. Buying and selling is expensive plus the move itself. Moving also takes a emotional toll because it takes years to find your tribe and develop deep friendships. I wouldn’t follow any of my kids because they may need to move for jobs at some point.

You shouldn’t at your age take financial risks especially because if something happens to your spouse you lose one income and one SS. I would figure out where I want to live irregardless of anyone else. Then I would move there and age in place.

[Tybee]

I have owned 10 homes. Some made money and some lost. What you are considering makes no sense to me. Buying and selling is expensive plus the move itself. Moving also takes a emotional toll because it takes years to find your tribe and develop deep friendships. I wouldn’t follow any of my kids because they may need to move for jobs at some point.

You shouldn’t at your age take financial risks especially because if something happens to your spouse you lose one income and one SS. I would figure out where I want to live irregardless of anyone else. Then I would move there and age in place.

Thanks, Terry, good advice. I agree about not taking a lot of financial risks at our age.