Please help -- need to buy my parents a house?
Hi all, will caveat this by saying I really do not know a lot about real estate so apologize for any obvious / stupid questions, but really appreciate any input you might have.
My parents really want to buy a house within the next year, but won't be able to do it on their own and asked for my help. The goal was always to buy my parents a house, but they've definitely raised the issue a lot quicker than I would have intended and I'm not sure what would be the best way to go about it. They're both getting pretty old (60+) and still live in the same 1B1B apartment I grew up in, so I really would like for them to finally live in a house that's ours and have their monthly payments go toward the house vs. rent. However, my parents have a troubled financial history (bad credit, bankruptcy, foreclosure, etc.) and they don't earn a substantial amount of money (dad is a general contractor, mom used to be a waitress but can't work anymore due to health reasons), so don't think they would qualify for a mortgage. I think my parent's idea was to put together some money and buy a house under my name that they would would live in, and they'd pay me rent that I would use to pay the mortgage, and eventually I'd be able to do whatever I'd want with the house. We're not looking for anything that nice -- just a small, modest home in the suburbs of CA.
As implied from my title, I just recently started my associate gig at a PE firm (after 2 years in IB) so I'm still pretty young. Currently have about $85k in savings (NOT including my retirement accounts) and am set to receive another ~$65k bonus at year-end (but a lot of that will go to taxes). I'm just not really sure what would make the most economic sense with how much I have right now and where my parents are at. My parents said they want to contribute but am I in a position to be able to do this on my own / should I do it on my own? Any tips on how to navigate this situation in general? Again, sorry for my lack of knowledge on this topic, and thanks in advance for your help.
My cousin did the exact same thing in a very comparable situation. he qualified for the mortgage because of his credit history and his salary was also high enough (he is in entertainment). The three went to look around and just made an offer for a large town-house in Pasadena.
He felt after his parents raised him and worked hard for his tuition/expenses, it was the right thing to do.
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