<prompt> Human: Hello All,My dad dug himself into a hole several years ago when he decided to refinance and cash-out on his equity. The house is currently worth around 900,000, but he owes 800,000 on it. 1st mortgage is 650,000 INTEREST ONLY, and the second is 150,000 adjustable. His proposal is this...he will take out 75k from his 401k and he wants me to match that 75k from my own savings so that we can pay off the second loan of 150k...This will make the total loan amount only the first mortage of 650k. We would immediately refinance after that to get a 30 year fixed loan not interest only at a good rate. He says if I do this, I will be the owner of the house pay the mortgage and property tax and he will just pay rent as if he is my tenant...Pretty much, I put up 75k, and have ownership of the house, have the greatest tenants in the world my parents and even get a tax deduction for the interest. Isnt this a no-brainer? Someone please let me know what I should be concerned about and what questions I need to ask...Also, how easy is it to transfer the ownership to my name...Is this considered a fraudulent act if I am taking over the house for only contributing 75k? Does it matter since it is immediate family and not a transaction between two strangers?  <response>: He says if I do this, I will be the owner of the house pay the mortgage and property tax and he will Thats not how this works. You dont just become the owner here. He would need to do a quit claim deed on the note, and youd become fully liable. Not to mention, a lender would have to approve the refinance.Lets say you magically did get all this worked out, and suddenly youre the owner. Youre going to have to change the homes insurance to that of a rental dwelling. On a 900k home, thats not going to be cheap. Youre also going to have to report all of that rent your dad is giving you as taxable income. This also majorly screws you if you ever wanted to go purchase your own home, as you have this HUGE liability that you yourself likely cant afford on your own.Someone please let me know what I should be concerned about and what questions I need to askYou need to be concerned about the fact that youre taking on all of the debt here, as well as making a HUGE assumption that you can just magically refinance the house once the second loan is paid off. Not to even mention, you cant just be added on a loan during a refi.This situation sounds absolutely toxic as is. A 650k INTEREST ONLY loan? A second loan totaling 150k? Your dad is the exact kind of person that got into the messes that happened before the financial crash. Hes on thin ice and wants to put it on your shoulders to handle. 