Help with a family home & first time buyer

DMAC89

I have recently bought my first property (this month) and have some additional money set aside for an investment property. However a family member is likely to have their home repossessed as they owe 30K and can't pay. As they don't want to move I am looking at buying the house for the amount owed and agreeing they can live there for the rest of their lives rent free. As I won't be getting rental income I still want to work towards a investment property. I was wondering how long after making the purchase for cash would I be able to re-mortgage the home to get a deposit for an investment property? The house would be worth 100K so I should be able to get my money back?

amnblog

You are causing yourself a problem here and you need to get some professional advice before you take this course of action.

There are numerous potential issues.

ACG

You are going to struggle to get a mortgage on a property where someone has a guaranteed tenancy with no rental income. You would also struggle to sell it and you would be liable for home improvements, stamp duty and capital gains tax.

As far as daft ideas go, this is up there with the best of them :P

As amn says, get professional advice.