My wife's grandmother wants to sell her house. We live right next door to her and have a small house. My wife's grandmother asked us if we would consider buying her house and her buying our house. I was thinking that instead of us taking out a mortgage to buy her house could we do something like buy her house for $1 (and she buys ours for $1) and then just pay her a monthly payment. This would basically eliminate paying interest on a mortgage. Can you do this with houses? If you can do this are there any negative things for her or us? Thanks.