What is the name of your state? nc, second house in VA
I have gotten an offer from a relative to buy into his townhouse outside of DC. He has lived there over a year and uses an intrest only loan as he plans to turn the place over in 3-5 total years. The offer is to plant some investment monies in a growing DC subarb, and cash out when he does.
a) What is the mechanism to buy into or invest my money in the principal of the loan when my name is not on the mortgage?
b) What are the tax ramifications of doing this, as we own a home in NC as our primary residence? On the surface it appears a little like buying a time sharing week, but we won't be living there (only weekend visits).
Thoughts or advice?
I have gotten an offer from a relative to buy into his townhouse outside of DC. He has lived there over a year and uses an intrest only loan as he plans to turn the place over in 3-5 total years. The offer is to plant some investment monies in a growing DC subarb, and cash out when he does.
a) What is the mechanism to buy into or invest my money in the principal of the loan when my name is not on the mortgage?
b) What are the tax ramifications of doing this, as we own a home in NC as our primary residence? On the surface it appears a little like buying a time sharing week, but we won't be living there (only weekend visits).
Thoughts or advice?