<prompt> Human: Hello PF. Recently, my grandmother passed away and left a paid off house to my father. Ive recently graduated college and am beginning my career at 55k a year. Ive been looking around at renting a place and the cheapest options are roughly 600 a month. However, my father offered to sell me the house my grandmother left behind. The catch is, my father wanted to give half of the sale value to my grandmothers Nephew, who we have a very good relationship with. The house is worth roughly 120k. My plan here would be to transfer the title to me, take out a loan for half the houses worth using the house itself as collateral, since we outright own it and use that to pay my grandmothers nephew David. I have excellent credit 3 cards with low utilization, and an auto loan with 0 missed payments. Essentially I would have a 60k mortgage on a 120k house. This comes out to roughly 300 a month for the mortgage and I would likely put another 300 a month into a house fund to pay for any repairs in the future. I cant beat that pricing by renting.Not paying David is not an option, we have a close relationship and the 60k is not worth jeopardizing that. My father is okay with the entire situation seeing as he recommended it. He will comfortably retire and said he doesnt need the money from selling the house. Its essentially my inheritance coming early.My question: are there any pitfalls I may run in to when doing this? I feel like its too good of an opportunity to be true. I would likely have our lawyer draft a contract for David to sign upon payment to hopefully avoid any issues in the future there. Are there any gift tax issues I would run in to when doing this since David has no legal ownership of the house? Is there anything Im missing? Edit: I should note, the house is currently in excellent condition. My grandfather took great care of it when he was alive, and my grandma paid people for maintenance after he passed. There are no real immediate repairs needed. The roofing is new 2 years and the water heater is newish 8 years. I also have no debt besides my car loan at 11k with 6 interest andpaying 500 a month to pay it off early. In case that made a difference when looking at the financial side of my plan.  <response>: IANAL, but I would keep your nephew out of the real estate transaction. Buy the house from your dad for the 60K as a private sale. The two of you can decide on payment amounts and interest, if any. There is no reason for a bank loan. Your father can decide how he wants to handle giving money to his nephew as a gift. That way, if the nephew turns into a dick or starts blowing the money on drug or if he lost a civil suit or had a paternity claim, your dad can just cut him off so the money doesnt go down the drain. If the estate has cleared probate, David has no claim on the house. There is no reason for him to sign anything. Your dad could use online tools for the home sale and you would never have to pay a dime to an attorney. You will still have to pay whatever fees might exist related to the transfer of ownership of the house. Also, the assessed value of the house will probably be based on the market value, not your purchase price, so keep that in mind when calculating property taxes. 