BiggerPockets

Nick,

From what I understand, this house would have to go through the probate process to get a clear title on it. It doesn't sound like it has.

I would definately consult a real estate attorney before I put up any funds or made any commitments.

nick,

When a person dies without a will and owns property it is called Intestate. the property is supposed to pass to the decedent's heirs according to the states Statue Of Descent and Distribution. In effect, the state makes a will for an intestate decedent.

You will want to check what your state has in place for this issue. Good luck.
p.s. the above paragraph came right out of the Modern Real estate Practice textbook.

An executor or executrix is named in the will. When someone is intestate the state is the executor and all parties must abide by the decision of the state.

This could be a good opportunity to gain some experience if the executor will let you get involved.

Thanks for the replies guys.

Kevin, I definetly think there is an upside here. I may have understimated the $55k ceiling for comps. Since I made this post I got a couple emails from local RE agents and the houses that have sold on the block in the last year seem to average $48-49 a sqft. This house is 1293 sqft that puts it at 62k. I'm basing this being a good deal if I can get this house for $10k. About 750 is owed in back taxes. My fatherinlaw is the reponsible one, and he coudlnt care less about this house, he didnt pay the taxes cause he doesnt want to deal with it, not because he cant affford it. And like I said the rest of the family are crackheads and couldnt care less about the house, so if I wave a few bucks in front of them they will sign it away.

About the repairs. All I know that is wrong with it is there's a broken pipe under the house (pier and beam) and part of the floor is sagging somewhere in the house. I havent seen this myself. Even if I put in another 10k into the house Im at 21k. If I can sell the house for $50, which is below comp value, I would be doing good. This is the numbers rolling around in my head. Im sure Im missing expenses here, but it seems like I have some wiggle room.

Nick, what else is available that you could buy and rehab?

If you make a good paycheck on this house after paying off the relatives, they will forever come back and say that you own them more money even if they agreed in writing to settle for what you pay them today.

Is it worth it? This is your wife's family. Does she want to forever part with them for $10k - $20K?

I've seen intestates come back years after the death since no one bothered to petition for such (to be named executor, etc.) without a will, or the heirs didn't probably give a damn overall or lost contact and didn't know...or even the will was lost and found.

Consult with a probate attorney...but it should be for the state where the death occurred (which I'm assuming is Texas-makes life a bit easier).

You also don't need to "buy" the property, you'd simply inherit it with the case approval and disbursement of assets. I'd be more than highly willing to bet that none of the other heirs would care if you did.

Since no one else in the heirs right now cares to start the process, a good candidate would be your wife to be named executrix since it's a more "direct" family member.

The alternative would be to simply sell it either during (if the court allows it or you don't need to file for such) probate and just collect the money there instead after estate settlement.

Sure there's always the possibility of family "backlash" after...but that call is up to you based on how your family is.

Personally, I'd think it's worth the pursuit if you want to spend some time on the side with it.

It will probably have to go through probate. You may have to wait until its over or talk to the courts about buying it.

Brian Haskins