R
Ricardo769
Guest
Hello, I am a 1st time poster from New York with an interesting predicament and could use some advice.
I am starting my medical residency in NYC July 1 and am looking to buy a co-op or house, however I currently have no money or assets. I will be making $50K starting July 1st. My brother is also starting graduate school in NYC and is looking for a place to live, he has no income- my father as well as student loans are paying for his living expenses. My father owns a house in the nearby suburbs and is willing to become a landlord ( as he has the money for a 10-20% downpayment on a co-op/house) as he believes that it is worthwhile to invest in real estate instead of paying exuberant rental prices. THe ideal situation would be my father purchasing a home/co-op with his good credit, using his home's equity for a downpayment and the paying for the mortgage via rental checks from my brother and I (my brother will initially be unable to pay so essentially it will be just from me for the first two years). It is my understanding that the benefits of this plan are as follows:
1) we will own the home/co-op
2) my father will be able to deduct interest payments on the mortgage as well as any expenses he as a landlord generates for maintanence, etc. He wil also be able to deduct depreciation. I guess he will have to start a LLP or FLP??? I am unsure about how this works. He can deduct part of the maintenance fee on the co-op.
3) I will have the benefit of a landlord that is lienient and that I obviously trust.
It is my understanding that co-ops cannot have landlords and that condominiums can, so my father would not be able to become a landlord and have the benefits they are entitled. BUt, he would if it were a house. That aside- how do I go about doing this??? Is there an optimal way?? Are there laws against being a landlord to your family? Especially when you are paying for one of the tenants. Do we need to start an LLP? Is this worthwhile? How long will the paperwork take? WHat if one or two of the tenants are not family?
Your time is much appreciated.
I am starting my medical residency in NYC July 1 and am looking to buy a co-op or house, however I currently have no money or assets. I will be making $50K starting July 1st. My brother is also starting graduate school in NYC and is looking for a place to live, he has no income- my father as well as student loans are paying for his living expenses. My father owns a house in the nearby suburbs and is willing to become a landlord ( as he has the money for a 10-20% downpayment on a co-op/house) as he believes that it is worthwhile to invest in real estate instead of paying exuberant rental prices. THe ideal situation would be my father purchasing a home/co-op with his good credit, using his home's equity for a downpayment and the paying for the mortgage via rental checks from my brother and I (my brother will initially be unable to pay so essentially it will be just from me for the first two years). It is my understanding that the benefits of this plan are as follows:
1) we will own the home/co-op
2) my father will be able to deduct interest payments on the mortgage as well as any expenses he as a landlord generates for maintanence, etc. He wil also be able to deduct depreciation. I guess he will have to start a LLP or FLP??? I am unsure about how this works. He can deduct part of the maintenance fee on the co-op.
3) I will have the benefit of a landlord that is lienient and that I obviously trust.
It is my understanding that co-ops cannot have landlords and that condominiums can, so my father would not be able to become a landlord and have the benefits they are entitled. BUt, he would if it were a house. That aside- how do I go about doing this??? Is there an optimal way?? Are there laws against being a landlord to your family? Especially when you are paying for one of the tenants. Do we need to start an LLP? Is this worthwhile? How long will the paperwork take? WHat if one or two of the tenants are not family?
Your time is much appreciated.