Wrong focus. That's literally peanuts.

^^^ This is what you should be considering and discussing...as adults.


^^^ Without seriously real, adult conversation including extensively detailed WRITTEN boundaries and consequences, I'd do what my man Scott says.

She has student loans and poor money habits. Ever heard of "giving a drunk a drink"? Same thing.
Lastly, if it were me, I'd pay the $93 and put the SD through this as a precondition to renting to her.

Financial Peace University - daveramsey.com

Btw, my mother had rental property and never, and I mean never used any written leases or boundaries. She was taken advantage of and used by renters and family alike.

You'll be the "rich" guy that can afford missed rent or extensive repairs due to careless tenants.
I've seen it, I've lived it, I know what's possible.

I've been a landlord around 15 years. This is not going to work out for you in the long run. Quite frankly in all of these years I have yet to met ANY other landlords that have had success in renting to family/close friends after a year or two.

The only time it has worked is if the landlord has more than enough income from another source and they are renting to family just to be nice. Or the family member is getting a check/dividend that goes directly to the landlord.

If you are not in any of these situations, your clock to a financial "f-up" and or huge family problems is ticking.

The only predictor of future behavior, is past behavior. Succinctly, if someone hasn't paid anyone else on time, they ain't planning on paying you either.

OK, you guys have talked me out of it.
I did title the thread "Bad idea or terrible idea", so I suspected it going in.

On the other hand, if everything went horribly wrong it might help me forget selling my E30 M3 a few years ago, right before they went crazy. No banghead smiley on this board?

Saw this thread earlier and didn't have time to comment....and now I don't feel the need to :). Except to add this...though I have "no pets" in my leases, I do allow them with my approval...I'm a real sucker for animals, and I'm not the only LL like that ;).
Help your SD find a pet friendly LL...YOU offer to pay something extra (pet deposit or more each month, though I don't require either), and you'll look like a shining star for a LOT less than your "idea" would cost ya..."win, win", and you'll be helping your SD without all the other downside potential. If you decide to change your mind again, I have quite a few other reasons , and I'll be glad to add to the "dog pile" though :p. Best of luck...your heart is in the right place IMO.

As usual I have very little to add other than 1) I dated a young woman from Davenport in flight school. She was a former flight attendant who was also a student Naval Aviator with me. She now flies for the airlines as a Captain. I have sea stories, all good, concerning Ann...we flew together a few times. Great pilot, BTW, finest kind.

2) Davenport is a beautiful place.

Other than that fluff, make sure everything pencils out financially and emotionally. If it makes you feel better, write a contract with her, go through the machinations of actually getting a mortgage, renting a place (first and last, dogs). It my help her understand the sacrifice you are thinking of making.

The only way I'd do what you asked about, frankly, is if I could afford to lose the investment...too many moving parts as many have mentioned..

FWIW, one should check HOA/condo documents of a prospective type residence VERY, VERY closely. Did I mention how close to check the HOA/condo documents?

- I have seen an acquaintance with pets actually buy/close only to find out shortly thereafter that pets are not allowed according to the docs and thus have to sell and take it on the chin (that or give up their pets :( ). Doh!

- I have seen an acquaintance do the title/mortgage in their name shuffle for a family member only to find out the family member is considered a renter and either no renting is allowed or one can rent but only for a year and then it is un-rentable for the following year (rinse/repeat) according to the docs. Again the sale resulted in taking it on the chin. Doh!

You'd be amazed at the HOA/condo snoopy doops who have nothing better to do than snoop around for stuff like this.

My anecdote...
I rented my first place from my brother.
It was a old one car garage with huge cracks in the floor, it had a toilet in the corner prison style so we installed a stand up shower stall next to the toilet, walled it in and made a small bathroom. It also had a set-tub that became my kitchen sink. We ran some gas pipe and found an old oven I cooked with and used as a heater (bad, I know).
I paid him $200 a month and never missed a payment (we worked together in my dad HVAC business)
After a couple years he decided "hey, we are a block from the beach, I could get a lot of money for this place!" and kicked me out.
His best friend moved in...
And never paid him a cent. :D

100k really isn't that much money, even if you don't make a ton. Her goal should be to get her own place after living there for a year or two. If I were you, I'd tell her that you will match her down payment savings with x percent (as a gift right at closing) if she gets going on the right path. If she gets to down payment territory (I'd insist on 20% on such a relatively inexpensive house) you will know she will have the discipline to make it happen and your gift will likely help her out.

Just my two cents ...

G