What is the name of your state (only U.S. law)? California
This is kind of complicated, so please bear with me.
I am conservator for my brother (LPS). He is currently in a nursing home with serious health issues (COPD, cirrhosis, diabetes, etc.) and is also schizophrenic. He owns a mobile home, and was getting low rent. His SSDI payment was barely enough to cover the low rent and food. Now that he's in the nursing home, his social worker has changed his status so that the SSDI goes to the nursing home. There is no money to pay the space rent on the trailer. Not only that, but thel park has doubled the space rent to the usual amount since he's not living there. (I wrote about this on another topic on this forum). And, they don't allow anyone to rent out their mobile home in that park. This means that I may have to sell the trailer, which would stop his benefits from Medi/Cal, and within a year would exhaust whatever equity he has in it. He would be homeless.
Getting creative, I thought that if he would be able to sell the trailer and purchase a regular home or condo (1031 exchange), he could rent it out until he's able to return home. As long as the mortgage was the same as the space rent on the trailer, there would'nt be any net income to him. He could conceivably move into this home at some point. The advantage would be that: 1) The equity in the home would increase by renting it (ok, maybe not much in the beginning), 2) He could sell it and purchase another mobile home again, 3) He wouldn't lose equity by having to sell the mobile home and losing his Medi/Cal eligibility. 4) There would not be any capital gains tax on the sale of the trailer.
All of this would hinge on whether the sale would legally put his benefits in jeopardy, in light of making an immediate purchase/exchange of another home.
Maybe this question is better suited to the Real Estate area, but I'd appreciate any comments and advice. Thank you very much.
This is kind of complicated, so please bear with me.
I am conservator for my brother (LPS). He is currently in a nursing home with serious health issues (COPD, cirrhosis, diabetes, etc.) and is also schizophrenic. He owns a mobile home, and was getting low rent. His SSDI payment was barely enough to cover the low rent and food. Now that he's in the nursing home, his social worker has changed his status so that the SSDI goes to the nursing home. There is no money to pay the space rent on the trailer. Not only that, but thel park has doubled the space rent to the usual amount since he's not living there. (I wrote about this on another topic on this forum). And, they don't allow anyone to rent out their mobile home in that park. This means that I may have to sell the trailer, which would stop his benefits from Medi/Cal, and within a year would exhaust whatever equity he has in it. He would be homeless.
Getting creative, I thought that if he would be able to sell the trailer and purchase a regular home or condo (1031 exchange), he could rent it out until he's able to return home. As long as the mortgage was the same as the space rent on the trailer, there would'nt be any net income to him. He could conceivably move into this home at some point. The advantage would be that: 1) The equity in the home would increase by renting it (ok, maybe not much in the beginning), 2) He could sell it and purchase another mobile home again, 3) He wouldn't lose equity by having to sell the mobile home and losing his Medi/Cal eligibility. 4) There would not be any capital gains tax on the sale of the trailer.
All of this would hinge on whether the sale would legally put his benefits in jeopardy, in light of making an immediate purchase/exchange of another home.
Maybe this question is better suited to the Real Estate area, but I'd appreciate any comments and advice. Thank you very much.
