Home Selling in 17602>Question Details

acv987, Home Buyer in Lancaster, PA

Please me reasons why its terrible idea to buy a house and sell it after 3 months!

Asked by acv987, Lancaster, PA Thu Jan 17, 2013

Heres the situation. My mother in law is getting divorced and has moved in with us in our apartment. Its starting to get tense because of the limited space. My wife is getting close to losing it. My wife and I have been saving and planning to move out of state in 6-9 months. My wife is trying to convince me that we should buy a house in our current state in 3 months, live in it with her mom for a few months, then move like we planned out of state. So we would live in the house for 3 months then sell it to her mom, or rent it. I am preparing to go home and argue about this and need reasons why this is a terrible idea and we should just wait to move out of state like we originally planned.

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Answers

4
You have two separate problems here:

The house is a financial problem; whether you sell it or rent it: It is all numbers.
The mother-in-law is a diff problem.

This all comes down to your relationship, short-term and long-term; do you enjoy here company and love her: It is obviously important to your wife, and it will be for the rest of your life.
1 vote Thank Flag Link Thu Jan 17, 2013
Currently I am more concerned with numbers. Both of us do not want to live with her mother. If we were to move out of state after her mom had a job, she would just have to find a place to rent. We would more than likely take a loss reselling so quickly correct?
Flag Thu Jan 17, 2013
It depends on the situation, call me 717-538-3910. You most likely will not be able to sell it for more than you paid. Even if you sell it for the same price your going to have 5-10% in cost to do so. Commissions, transfer tax, repairs a buyer may want etc. Unless you're buying at a severely reduced price I would be very cautious.

In this case, as a back up, if you could not sell it and could derive an income from rent money the mother in law might pay, all while still being able to afford your next home (which you will need to check with a banker on before you do anything) maybe it could work?

Call me
1 vote Thank Flag Link Thu Jan 17, 2013
Yes, she would need to be employed. Also, she needs to have good credit. If she is self employed or paid by 1099 she needs a minimum of 2-years work history with tax returns that show ability to pay the mortgage. It sounds like it has a lot of moving parts. I would probably wait until she has her divorce finalized an minimum prior to making a decision. make sure you talk to me or another "qualified" realtor to help in your decision making.
Flag Thu Jan 17, 2013
Thanks for the reply an input. Us not haveing perfect credit (but good enough to get one mortgage) would probably be an issue as well with renting it out. I doubt we would be able to get an additional mortgage on a second house. So selling would likely be the only option. Her idea is to sell it to her mom. Her mom is currently looking for a job, so wouldn't she need to be employed for a while before she could even buy it from us?
Flag Thu Jan 17, 2013
just say no. buying a home is a life changing decision. don't ruin your life by making a wrong decision like this. Unless you can pay cash for the house and then buy another home after you move, don't do it. Move to a bigger apartment and put your mother-in-laws name on the lease (not yours) until you move.
0 votes Thank Flag Link Tue Oct 21, 2014
Getting divorced is stressful, so the first question that I would ask would be is her "condition" temporarily, or do your feelings towards her precede the current state of affairs?
That being said, and considering the one caveat that business relationships with relatives can be problematic, renting back the house to her might work better than trying to sell it after three months. Looking at the experience of those who thought that they could make a fortune "flipping" houses, it is easy to see that selling so quickly is not always a good solution.
0 votes Thank Flag Link Tue Oct 21, 2014
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