Acquire a Rental Property for a Family Member

rental-property-family-memberOur client located a single family house in an attractive neighborhood outside of Chicago that she wished to acquire for rental to her daughter. The daughter must pay fair market rent to her mom, but the use of the property in our client’s hands was one of investment.

Our client went to work to get two existing rental properties in Vermont sold to fund the purchase of the suburban property. She was very careful to arrange for a closing on the new property three months away, giving her enough time to get the existing properties sold. Since she was going up in value from the two old properties, she got a good exchange and assisted her daughter in the process.

Eventually, she can gift this property off to her daughter. This allows for the transfer of wealth while the mom can direct its benefits during her lifetime.