A plan to move Mom and Dad once
A purchase and repayment plan for Jeff and Robin, funded until 109 Columbia Avenue sells.
I propose going ahead only if a conservative sale estimate and verified funds support full repayment and an agreed cash reserve. All amounts are planning estimates, not commitments.
Steve,
I would like to ask whether you would consider temporarily funding Mom and Dad’s purchase of 557 Biscayne Drive, so they can move directly into their next home while we finish renovating and selling 109 Columbia Avenue.
At a $900,000 negotiated price, the request is a $913,500 purchase loan, including estimated closing costs. That is separate from the roughly $200,000 you have discussed providing for renovations. Mom and Dad would buy and own Biscayne directly and repay your purchase loan, plus agreed interest, from the Columbia sale. This proposal assumes the renovation contribution is a gift, which we would confirm with you.
Buying before selling lets Mom and Dad move once
We’ve toured Biscayne together. Buying it first avoids a temporary rental and a second move, and leaves Columbia empty for the final work, staging and marketing that should help it sell well.
One planned move
Jeff and Robin go straight from Columbia to Biscayne. No interim rental, no storage, no second packing-up.
Columbia ready to show
A vacant house lets the crew finish the last work quickly and lets us stage and market it properly.
A clear repayment event
Your loan is repaid through escrow when Columbia closes. The sale proceeds are the source of repayment.
A defined budget and time limit
A target loan of $913,500, an agreed renovation budget, and repayment at the sale or 12 months, whichever comes first.
How the timing would work
Mom and Dad expect to stay at Columbia for the first one to two months of work. We would try to time the Biscayne purchase for when they need to leave, subject to the seller’s timing. [3]
This schedule is proposed. It depends on the construction schedule, the Biscayne negotiation and escrow timing. See the timeline.
One home to finish and sell, one to buy
109 Columbia Avenue
Mill Valley · Jeff and Robin’s current home
- Original purchase
- $408,000
- Completed work
- $169,000
- Planned work
- $200,000
- Mortgage balances
- $1,035,890
Family estimate of renovated value: $2.3–$2.5 million. This is our estimate, not a valuation; we need an agent’s conservative opinion of value before relying on it. [3]
557 Biscayne Drive
San Rafael 94901 · Peacock Estates townhome · MLS #326077317
- Asking price
- $949,000
- Our target
- $900,000
- Size
- 1,848 sq ft
- Bedrooms
- 2 + loft
- Bathrooms
- 2.5
- Garage
- Detached, 2-car
- HOA dues
- $890/mo
- Built
- 1989
The listing describes an updated kitchen and bathrooms. HOA dues are $10,680 a year, plus property tax, insurance and other ownership costs. [1, 2]
Walk through 557 Biscayne
We toured Biscayne in October. This silent walkthrough (4 min) combines our own videos, the listing photos and the key numbers. Jump to any part using the list.
Listing photos marked “staged” show furniture that does not come with the home.
A purchase loan that is repaid, and a renovation gift that is not
The request has two parts. They are documented separately and treated differently.
Paid through escrow to buy Biscayne at the $900,000 target, including about $13,500 in closing costs. Jeff and Robin own Biscayne directly.
Funds the planned work at Columbia. If it turns out to be repayable, every cash figure falls by $200,000 plus any agreed interest.
Principal plus about $19,412 interest at six months ($38,824 at twelve), paid from sale proceeds after the mortgages.
| Use of funds | Target purchase | At asking price |
|---|---|---|
| Biscayne purchase | $900,000 | $949,000 |
| Estimated closing costs (1.5%) | $13,500 | $14,235 |
| Purchase loan to be repaid | $913,500 | $963,235 |
| Separate proposed renovation gift | $200,000 | $200,000 |
| Total funding from Steve | $1,113,500 | $1,163,235 |
The $900,000 target is subject to negotiation, and a cash offer doesn’t guarantee a discount. A higher price or any extra advance would need a revised budget and your agreement. [1]
Interest is modeled at 4.25% simple, using the October 2026 IRS short-term rate as a benchmark. That rate is an illustration; the actual rate and its tax treatment would be agreed before signing. [4]
No equity cushion in Biscayne at the start
The loan equals 101.5% of the purchase price, so Biscayne alone offers no initial equity cushion. Counsel should evaluate Columbia as additional collateral, subject to its existing mortgages and liens. Security does not guarantee repayment. [8]
Proposed terms, for discussion
A starting point. We would agree on these with you and have a California real estate attorney and CPA review them before committing funds.
Mom and Dad buy and own Biscayne directly. You lend the approved purchase price and closing costs through escrow, with $913,500 as the target loan. The renovation gift is documented separately.
At the Columbia sale closing or twelve months, whichever comes first, with interest paid at payoff and no prepayment penalty. The rate is agreed before signing; 4.25% is an illustration. Any extension needs a new written agreement.
Counsel prepares a promissory note and appropriate recorded security, reviews lien priority and sets escrow payoff instructions. The loan equals 101.5% of the purchase price, so Biscayne alone offers no initial equity cushion. Counsel should evaluate Columbia as additional collateral, subject to existing mortgages and liens. Security does not guarantee repayment. [8]
We agree on your maximum commitment, the renovation budget, a target listing date and monthly updates. Any additional advance needs your separate agreement. The plan must fit your liquidity needs if the loan runs the full term.
What each Columbia sale leaves Jeff and Robin
The family estimates Columbia’s renovated value at $2.3 million to $2.5 million; we need an agent’s conservative valuation before relying on that range. The chart includes lower outcomes so we can see where more funds would be needed. [3]
| Columbia sale | Net long-term gain | Modeled sale taxes | Cash after 6 months | Cash after 12 months |
|---|
Cash deducts a 6% selling-cost allowance, $1,035,890 for Columbia mortgages, $40,000 to Maddy, the $913,500 Biscayne loan, modeled taxes, loan interest and $50,000 for other costs (moving, carrying costs and overruns, held constant at twelve months). The renovation gift is not repaid. Final lender payoff statements may differ. Figures rounded to $100. Trust and business cash flows belong in the separate household budget. [3]
Interest and the purchase price
Interest is modeled at 4.25% simple annual interest, the October 2026 IRS short-term benchmark. On the target loan that is about $19,412 for six months or $38,824 for twelve. The agreed rate and tax treatment must fit the note’s actual date and terms. [4]
| Columbia sale | $900K purchase, 6 months | $949K purchase, 6 months | $949K purchase, 12 months |
|---|---|---|---|
| $2,250,000 | −$47,500 | −$98,300 | −$118,800 |
| $2,400,000 | $53,900 | $3,100 | −$17,400 |
| $2,500,000 | $116,800 | $66,100 | $45,600 |
Buying at asking reduces six-month cash by about $50,800. At a $2.4 million Columbia sale, paying $949,000 leaves only about $3,100 after six months.
Proposed cash reserve: $100,000. Keeping it at the $900K target price requires about a $2.474M Columbia sale after six months, or $2.505M after twelve. Before committing, we would verify repayment and the reserve using the actual tax estimate and budget. If the $200,000 renovation contribution is repayable, subtract another $200,000 plus any agreed interest from these balances.
What’s done, what’s planned, and the order of events
The sequence below is proposed. Dates depend on the contractor’s schedule, the Biscayne negotiation and escrow. Nothing has been scheduled or signed.
Work already done at Columbia
Kitchen, dining and living room, deck, roof and bathroom renovations, assumed to include Maddy’s prior work. Documentation is needed for the tax basis. [3]
Additional qualifying renovation
Funded by the proposed renovation gift. Scope, contractor budget and schedule are not yet final. The work should add enough value to justify its cost, and the full amount must be spent to count toward basis. [10]
- Before committing
Verify, then agree terms
Conservative Columbia values, an itemized contractor budget and schedule, Biscayne disclosures and HOA documents, and a CPA tax estimate. Then agree the funding limit, loan terms and cash reserve with you.
- Month 0
Buy Biscayne
Your loan funds the purchase through escrow; Jeff and Robin take title. Timed, as far as the seller allows, to when they need to leave Columbia.
- Months 1–2 of work
Renovation starts with Mom and Dad still at Columbia
They expect to stay for the first one to two months of work.
- Then
One move
Jeff and Robin move into Biscayne. Columbia is left vacant.
- Following months
Finish, stage and list Columbia
Final work, staging and marketing toward an agreed target listing date, with monthly updates to you.
- Sale or month 12
Columbia closes and escrow pays off
Mortgages, your loan with interest, and Maddy are paid; taxes are set aside; the agreed reserve is kept. Repayment is due at closing or twelve months, whichever comes first.
How the sale is taxed
Sale price after selling costs, minus the tax basis, minus the home-sale exclusion and capital losses. Mortgages don’t reduce it.
What’s left after selling costs, mortgage payoffs, Maddy, your loan and interest, taxes and the cost allowance.
Value in a home beyond its debt. Biscayne starts with none of its own, since the loan is 101.5% of its price.
The estimate uses the family’s purchase cost, renovations, capital losses and expected income. Mortgage repayments affect cash proceeds, not the gain. These are 2026 planning figures; the CPA must confirm the actual closing year, deductions and available losses. [3, 10, 12–18]
| Adjusted basis input | Amount |
|---|---|
| Original purchase price (includes the $80,000 down payment) | $408,000 |
| Completed kitchen, dining and living room, deck, roof and bathroom renovations | $169,000 |
| Planned additional qualifying renovations | $200,000 |
| Modeled adjusted tax basis | $777,000 |
The $169,000 is assumed to include Maddy’s prior work. All $369,000 of improvements must qualify, be documented and remain part of the home at sale; the proposed $200,000 must actually be spent. The model applies the full $500,000 married home-sale exclusion and $330,000 of remaining long-term capital losses (federal and California). Other sale-year income is $15,000 of taxable trust income less a $20,000 business loss, a net −$5,000. [3, 10, 16–18]
Worked example: Columbia sells for $2,250,000
| Calculation | Amount |
|---|---|
| Sale after the 6% selling-cost allowance | $2,115,000 |
| Gain after subtracting the $777,000 basis | $1,338,000 |
| Net long-term gain after $500,000 exclusion and $330,000 losses | $508,000 |
| Adjusted gross income after the net $5,000 ordinary loss | $503,000 |
| Federal taxable income after the $32,200 standard deduction | $470,800 |
| Regular federal tax at capital-gain rates | $55,785 |
| Federal net investment income tax | $9,614 |
| California regular income tax before credits | $38,317 |
| Combined modeled sale tax | $103,716 |
Federal taxable income includes $98,900 at 0% and $371,900 at 15%, none at 20%. NIIT is 3.8% of $253,000. California uses graduated rates and an $11,800 joint standard deduction. The trust’s reporting must confirm the taxable amount and character, and the business loss must be deductible in the sale year. Assumes no rental depreciation or other capital transactions; excludes itemization, age-related deductions, credits and other adjustments. Treats the 6% allowance as eligible selling costs. [10, 12–15, 17, 18]
Price context for a $900K offer
The $949,000 asking price follows a $46,000 cut from $995,000 in mid-October. A $900,000 target is $49,000, or about 5.2%, below asking. An offer would need the agent’s analysis behind it; a cash closing does not assure that discount. [1]
| Recent nearby townhome sale | Closed | Beds / baths | Sq ft | Sale price | Per sq ft |
|---|---|---|---|---|---|
| 125 Knollwood Drive [5] | Jul 20, 2026 | 2 / 2 | 1,865 | $899,000 | $482 |
| 15 Sulgrave Lane [6] | Sep 30, 2026 | 3 / 3 | 1,694 | $955,000 | $564 |
| 143 Knollwood Drive [7] | May 6, 2026 | 3 / 2 | 1,900 | $1,152,000 | $606 |
| 557 Biscayne Drive (asking) | Listed Sep 11, 2026 | 2 + loft / 2.5 | 1,848 | $949,000 | $514 |
These are nearby examples, not an appraisal or completed comparative market analysis. None is verified as a sale within Biscayne’s 12-unit association. Bedrooms, condition, views, layout, sale date and HOA obligations all need adjustment. The similar-sized two-bedroom sale at $899,000 is useful context for the target price.
What we’d settle together before committing
Confirm your gift and loan terms
OpenWhether the $200,000 is a gift, your maximum commitment, the interest rate, the twelve-month limit and any extension terms.
Get a supported Columbia valuation
OpenConservative as-is and renovated values from an agent, before relying on the $2.3–2.5 million family range.
Finalize the renovation budget and schedule
OpenAn itemized contractor budget, a realistic schedule and a target listing date.
Review Biscayne disclosures and HOA documents
In progressInspections, reserves, budgets, board minutes, insurance, assessments and responsibility for major repairs. We’re obtaining these now; no defect or assessment is assumed. [11]
Confirm tax assumptions and lender payoffs
OpenCPA review of basis, exclusion, capital losses, trust income and business loss for the actual sale year; lender payoff statements; Proposition 19 eligibility and property taxes during the overlap. [9]
Identify funds for costs before Columbia closes
OpenMoving, carrying costs and overruns before the sale. The $50,000 allowance is an expense estimate, not an additional advance assumed from you.
Agree the reserve target and a fallback plan
OpenA minimum cash reserve and verified funds for any shortfall. If needed, lower the purchase budget, or use temporary housing and sell Columbia first.
Would you be open to talking this through?
We could review the valuation, contractor budget, disclosures and tax estimate together, then agree on the funding limit, loan terms and cash reserve before anyone makes a purchase commitment.
Thank you for considering this. My goal is to help Mom and Dad make one manageable move, and to give you a clear picture of how the funding and repayment would work.
Jake