Architectural Designs

Should we move to rent or stay in too small house with a mortgage?

we live in a older house that is really small and would be expensive to redo and add-on. We have been given the chance to move a few houses away from where we currently are and pay rent until the owner dies and we would inherit it. We still owe 23 years on our house. We would be paying about the same as we are now. The new place is a duplex that has been rewired, etc.. we would get both halves. The new place is alot bigger that our current house. we need the space as we have a 2 year old and may plan on having more children. The owner is our friend and neighbor. My husband thinks it would be great but i worry that we won't be able to sell our house and the other unknowns. I know that we have to do something. I also worry about going from "owner" to "renter". Any advice? The owner inherired the house from a friend. There isn't a mortgage. We really trust this person.

Public Comments

1. the only problem with it is any profit you may earn on the sale of your home will be taxed. Are you sure you will inherit this home? Is the owner a blood relative? Does he or she have any other heirs that may contest the will.? Are you for sure in the will? These are the problems I see with it. You may want to rent your home out for a while and move just to see. If it isn't working out you can always move back into your home. You will have some tax benefits as being landlords yourself
2. ....the offer sounds really good, if its legit... I would make sure that it is written in contract form or in a will that the house will be left to you. You may want to check to see if he still owes money on it, he could leave you with a huge mortgage or other liens on the property. if he has family members, they be interested in learning why they were ommitted from any inheritance.. if averything looks ok, I'd go for it.. rent out your old house for awhile until you can sell it.
3. The only thing I'd like to add to the other answers is do you know if the owner of the home you'd inherit owns it free and clear or do they have a mortgage on it? If they have a mortgage when they pass it would be your responsibility to refinance into your name and depending on how much they still owe it may be a larger mortgage than you have now.
4. I would kick Gus or whatever his name is to the door as soon as I moved in!
5. HI: I understand your fear - "MAKE SURE THERE IS A HARD BINDING CONTRACT FOR THE SALE OF THE NEW PROPERTY" You say: "You will inherit the property when the owner dies." So I am assuming the property is 100% owned by the person, no mortgage. If not the outstanding balance has to be paid to the bank in the event of death. The property can be sold with the mortgage payable to the current owner until death or (X number of years have expired). This permit you to have a standard mortgage, while the current owner has the income they need. You can always rent the smaller property, you may get more in rent than the mortgage you are paying, this will reduce the cost of the larger house. In any case, this is an opportunity. when OPPORTUNITY KNOCKS - ANSWER THE DOOR. Go for it, just make sure all the bases are covered.