You can get all the real estate market data at http://www.findhomesforsaleinsacramento.com/
I am an attorney and real estate broker and I would be happy to meet with you to dicsuss your options. As you can see from the responses you really need to get some legal and tax advice before proceeding. Please call me to schedule a time to come to my office for a free consultation. thanks TED
Tax implications may be worse if your parents "gift" you the home, plus the current loan most likely has a due on transfer clause. Again talk to a good tax person. If you don't have a tax person contact me direct and I will send you some names.
I see one of your options as:
Everyone move into your parents home, then sell the rental, look for a new home and finally sell your parents current home. Speak with an attorney as to how to best hold title to protect all of you.
1) Do you qualify for a new loan
2) What is the equity in the home you live in
3) What is the net equity if the home were sold
4) What are the consequences of the sale of present home
If you qualify for a new loan and if the net equity would be
sufficient to purchase the new single story home that
Taxes are not our expertise so I would always refer you to an
expert in the field. That said
If the home is sold and there is a net profit, that should create a
tax liability for your parents-----at a long term capital gains rate.
If the sale only nets the amount of initial investment then there
should not be a tax able event.
From the net funds from the sale, they could gift funds to you
for an FHA purchase.
If you do have enough equity, maybe it would make sense to refinance the rental and use some of the proceeds to buy with 3.5% down FHA for yourself, leaving your present home in a rental situation?
Any advice would be greatly appreciated. We live in the Sacramento, CA area. Don't want to keep this home as a rental as we need the $50K we put down to use as a new down payment. Thank you in advance