Live in Duplex- unique opportunity- beginner
Hello all-
I am very new and obsorbing info while getting to know the local market here in Dixon, Il. Convinced first home will be a duplex live in and here I have a unique opportunity to buy a property from my father. It is a large duplex (2) 2 bedroom, 4 car garage, on 2 acres near a developing commercial area. Property would be appraised commercial. Walmart with in walking distance. Banks, clinics, retail and restaurants all in the area/ walking distance. Appraised at roughly $400,000.
I currently live in the downstairs unit of this property. I'll try and roughly explain terms of the deal with my little education. My father and I would agree on current value based on appraisal. We then would agree on a purchase price. For this discussion we'll say value $400,000 purchase price $200,000. In purchase agreement it would state that upon my sale of the property I would owe my father or his estate the remainder of the appraised value at time of purchase. I buy for $200,000 sell down the road for $450,000 I pay father $200,000 to cover the $400,000 and pocket remaining $50,000.
The utilities are split, I can get $800 a month for rent per unit and rent 2 garage stalls for additional income, though I would occupy one unit for at least 1 year.
What are some things to consider? Should I treat this just as any property analysis? Anyone else had similar situation structured?
I'm an open book! What are your thought on this.
Thanks BP!