Hi! My husband and I have had my mother living with us and we now want to get her her own place. She unfortunately doesn’t have a ton in retirement money saved (maybe close to $100k, early 70s). So we know we will have to supplement some of her housing costs.
We anticipate that she will move back with us in a few years—maybe 7-8. So we are trying to assess the best option that will ideally limit the financial hit.
We hope to have our first child in the next year. Currently we pay a mortgage of $1600 with our combined income of about $200k. Here are the options we’re considering. I’d love to hear opinions on these options keeping in mind where we’d get the most bang for our buck in terms of real estate- and/or if we could be thinking about this a bit differently.
1) Buying a condo (we’ve seen some go between $175-$250k in a subway accessible zone in our area. We live in a HCOL city and hot real estate market). The goal would be to put down a larger downpayment to reduce monthly payments. Then rent out the apartment when mom moves out. We think we could get $500 profit from monthly rental , and would pay off the condo quickly. Ideally this would give us a long-term return.
2) Convert our basement to a rentable apartment to help offset the cost of mom’s rent. We think it would take 5 years to get a return on redoing the basement. We really aren’t sure, though, how long we’d stay in this current house. I guess it would raise the property value if we were to sell in the future.
3) if you think both these options suck, I guess the last option is to rent her an apartment, with us covering about half of rent until we’re at a place where we can buy a property with an in-law suite. Thought that feels so far fetched given this crazy market 🙁
What do you all think?