Rising Son

Buying My Grandfather's House

Last October, when my father last came down to visit me, he asked if I wanted to buy my grandfather's house.

My grandfather died in 1986.

He lived in a two-bedroom house in downtown Renton, WA, on Williams Ave, just a block up from the Whistle Stop Tavern. He moved into that house around 1969, just after my grandmother divorced him. As far as I was concerned, that was HIS house, because that's the only house I remember him living in.

Even though I never lived in Washington, I did visit him many times. Everytime I visited him he had fudgsicles to offer me. His house was always a mess because that's what happens when guys live by themselves. His only companion was his father (my great-grandfather), who happened to live right next door. The two of them would spend their afternoons hanging out, smoking and driking screwdrivers.

My grandfather's house is a craftsman style home built in the 1900's. It's got a full-sized basement, it has a "casita" in the backyard, and a greenhouse for growing vegetables.

When my grandfather died, my father inherited it. He fixed it up, and rented it out. He's had the same renters since day one. These renters have government assistance (I think it's called Section 8), where the federal government guarantees the rent as long as my father keeps the rent low. He says these renters take very good care of the house. He actually hires them to do basic maintenance, deducting the cost from the rent.

If I buy the house from him, I'd inherit these renters.

The reason why he wants to sell the house is because he plans to retire this April. He currently has a mortgage on his own house. So when he retires, he's going to lose some significant income, and hence, wants to sell his father's house so that he can pay the mortgage on his own house.

Frankly, I'm not sure I can afford it. Actually, I probably could afford it, but I'd really be stretching things thin. I don't want to see my grandfather's home fall into the hands of someone who wants to tear it down and build something else. I don't want to see these renters get kicked out either; these are very honest and responsible people.

But if I do this, it has to be a wise investment. I don't see myself living in my grandfather's house, at least not in the forseeable future. But I do think that area of Renton is already highly valuable. That downtown area has undergone a lot of renovations, and it's now a great place to shop and take a stroll. Since my father inherited it, its value has increased five-fold.

As far as the rent goes, these renters won't be earning me enough to offset my mortgage payments. In fact, in most cases, rental properties never do. A profit is only made when the owner sells the property.

So here's the conflict...

If I'm buying this house for sentimental reasons, why would I ever want to sell it? That is, I'd purchase something that would actually cost me money each month, and even though the property is appreciating, I'd never sell it. It would just keep burning a hole in my pocket.

That's the problem when emotions and sensibility don't agree.