About short sales?
We own a house right now that we're going to do a short sale with.. it's worth way less than what we owe, but we have to sell it anyway.. Anywho, a fr...
We own a house right now that we’re going to do a short sale with.. it’s worth way less than what we owe, but we have to sell it anyway.. Anywho, a friend of mine has already done a short sale recently (I mean purchased a house through a short sale) nearby. She also owns another home in another city. Now she’s thinking of buying our house, and renting it out to us. What are the implications of purchasing another home (would be her 3rd.. she’s not an investor or anything, or a flipper.. but bought them when they were really good prices). Anywho, she owns her own business, with a partner.. a travel agency. Apparently when she bought the 2nd house, that helped her out with tax deductions and such. But what about the 3rd house? I hope my question makes at least a bit of sense.. I’m asking this question for her, and I don’t completely know about this stuff.. hopefully you can kind of see where I’m going with it. 
) Thanks in advance.
With short sales in general, you would have to typically get permission from your bank on the sale since they would ultimately be incurring the loss. If they say they won’t do it, you are kind of out of luck in this specific regard.
If they do give the permission, you may have issues with making sure the sale is an arms length transaction (meaning it is completely independent). The bank may feel there is a conflict if you turn around and rent the home back from a friend.
Finally, your friend has to qualify for a new loan assuming that is the case. If the friend is paying cash, then this will not be a problem. However, if they are obtaining financing, it may be difficult in the current market to do so for a third home.
Good luck and I hope this helps.
If she can afford the investment, why not? Having a short sale is going to hurt your credit for a while, so having her rent you your own house sounds ideal. Maybe you can buy it back in a few years. BTW, owning a second, & third house & renting at least one of them, technically makes her an investor. =^)