First Time Buyer - Off-Market Inheritance Deal

Canton, Ohio
Starting Out
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First Time Buyer - Off-Market Inheritance Deal

Adam Michel
Member since 2025 · 6 posts · 1 vote

I'm looking to purchase my first property with my fiancé (both 25) with the goal being to establish our primary residence together, as well as giving me the opportunity to add equity/value via rehab before moving on and converting the property into a rental within a year or so to kickstart an investment portfolio.

An interesting lead that recently came up is my parent's neighbor's house. The couple living there was elderly when I was growing up, and we recently found out that they passed away a couple years ago. Their children (now in their late 40s) inherited the house, but they have not listed it on the market, and I heard that neither is willing to move into it from their current setup, so the property has been sitting vacant. I found the son on Facebook and sent a quick intro giving my condolences, expressed my interest in purchasing the property, and provided my phone # in case he decides to follow up.

I'm in the process of preapproval with a couple lenders, and have reached out to a couple realtors in my area to see which may be a good fit. However, seeing as though I have already sourced the deal myself, would it still be in my best interest to use a realtor for this transaction if it works out? 

Any advice on this and experience/tips from others having gone through similar deals would be greatly appreciated!

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Brandon Snyder
Houston, TX · Member since 2025 · 21 posts · 5 votes
1y

Adam, that off market inheritance lead sounds like a perfect opportunity for a first purchase.. especially since you’ve already built some rapport with the seller’s family. I remember working with a friend who inherited his aunt’s home.. he got so caught up in the emotional side of it that he forgot the nuts and bolts..like having a good plan for the renovation budget and timeline. So the fact you’re already thinking about using your sweat equity to add value is a great sign.

Even though you found this deal on your own, a solid realtor can do more than just open doors for showings. As an invetsment-friendly agent (based out of Houston, TX), I’ve seen how the right professional will help you analyze cash flow, manage comforatble contractor bids, and even drive for dollars if you want a broader look at potential comps or deals in the neighborhood. From what I’ve seen in Bloomberg, it also doesn’t hurt to keep tabs on any shifts in local buying trends.

One more thing I’d consider is the exit strategy. If you’re planning to hold this property as a rental after the rehab, make sure you’ve crunched the numbers on a realistic timeline. Sometimes life happens faster than you think (weddings, job changes, market shifts), so it helps to know your break even point in case you need to move on sooner rather than later. Speaking of which.. what’s your plan if the property needs more updates than expected..would you hold it longer, or look for other creative ways to make it work?

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  • Brandon Snyder
    Houston, TX · Member since 2025 · 21 posts · 5 votes
    1y

    Adam, that off market inheritance lead sounds like a perfect opportunity for a first purchase.. especially since you’ve already built some rapport with the seller’s family. I remember working with a friend who inherited his aunt’s home.. he got so caught up in the emotional side of it that he forgot the nuts and bolts..like having a good plan for the renovation budget and timeline. So the fact you’re already thinking about using your sweat equity to add value is a great sign.

    Even though you found this deal on your own, a solid realtor can do more than just open doors for showings. As an invetsment-friendly agent (based out of Houston, TX), I’ve seen how the right professional will help you analyze cash flow, manage comforatble contractor bids, and even drive for dollars if you want a broader look at potential comps or deals in the neighborhood. From what I’ve seen in Bloomberg, it also doesn’t hurt to keep tabs on any shifts in local buying trends.

    One more thing I’d consider is the exit strategy. If you’re planning to hold this property as a rental after the rehab, make sure you’ve crunched the numbers on a realistic timeline. Sometimes life happens faster than you think (weddings, job changes, market shifts), so it helps to know your break even point in case you need to move on sooner rather than later. Speaking of which.. what’s your plan if the property needs more updates than expected..would you hold it longer, or look for other creative ways to make it work?

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  • Adam Michel
    OP
    Member since 2025 · 6 posts · 1 vote
    1y
    Quote from @Brandon Snyder:

    Adam, that off market inheritance lead sounds like a perfect opportunity for a first purchase.. especially since you’ve already built some rapport with the seller’s family. I remember working with a friend who inherited his aunt’s home.. he got so caught up in the emotional side of it that he forgot the nuts and bolts..like having a good plan for the renovation budget and timeline. So the fact you’re already thinking about using your sweat equity to add value is a great sign.

    Even though you found this deal on your own, a solid realtor can do more than just open doors for showings. As an invetsment-friendly agent (based out of Houston, TX), I’ve seen how the right professional will help you analyze cash flow, manage comforatble contractor bids, and even drive for dollars if you want a broader look at potential comps or deals in the neighborhood. From what I’ve seen in Bloomberg, it also doesn’t hurt to keep tabs on any shifts in local buying trends.

    One more thing I’d consider is the exit strategy. If you’re planning to hold this property as a rental after the rehab, make sure you’ve crunched the numbers on a realistic timeline. Sometimes life happens faster than you think (weddings, job changes, market shifts), so it helps to know your break even point in case you need to move on sooner rather than later. Speaking of which.. what’s your plan if the property needs more updates than expected..would you hold it longer, or look for other creative ways to make it work?


     Appreciate your reply! Unfortunately looking like this specific deal likely won't pan out; seller is definitely not motivated to offload quickly/discounted based on their replies.

    I found a realtor through BP who I'm now working with to find a property, so progress in the right direction!

    You've given me some solid pointers/items to take into consideration for future deal analysis, so thank you for that. To answer your last question, my realtor has contractor contacts I should be able to leverage for rehab budget estimates, as well as family friends with experience in the construction trades. Hopefully that upfront diligence plus a healthy contingency budget would suffice to keep me out of that scenario, otherwise I would foresee a guaranteed loss, or underperformance at the very least.

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  • James Enyeart
    Austin, TX · Member since 2018 · 19 posts · 4 votes
    1y

    When we bought our first home I KNEW it was a good deal and we jumped on it.  The only way I KNEW it was a good deal is I had been researching two areas for about a year.  I could tell by the list price and look of the property whether it was going to go pending, or languish.  If you have narrowed down an area you like research the heck out of it.  Your realtor can give you all the actual sales comps to help you see the difference between the listing price and the actual sales price.

    I however do have a little contrarian advice.  Why not look at "flipping" your primary residence and sell it rather than rent it?  The reason I say this is that no matter what your remodel if you are doing a lot of the work yourself (way to max out equity growth) then maybe look for an even larger remodel than you had thought about?  The single biggest advantage of selling your homestead is that you can take all the Cap gain tax free if you have lived in the home as your homestead for 2 of the last 5 years.  Single cap is $250K married $500K. Where else do you have a chance of getting that sort of tax free cash when you are young.

    You could also renovate, refi and rent it.  But you have closing costs for Refi, and sale, but in sale you get all your equity back out.  If you and your fiance are willing to make a couple moves and remodels you could put yourself in a very strong cash position.  Or stair step up on your homestead value pretty dramatically in a decade.  Just a different take

    Now this is not to say

    PS - those houses that were priced way too high and languish? Those are also opportunities, as you can sort of tell the inherited property that has not been updated for years.  Coming in and making an offer after nothing for months on. a dying listing is also worth considering.  If you agent is cool writing a lot of offers that may not pan out.  Good luck!

    1Reply
  • Kerlous TadresBusiness Member
    Realtor · Columbus, OH · Member since 2023 · 1k+ posts · 1k+ votes
    1y

    Using a realtor can still be valuable, even if you sourced the deal. They'll help with negotiations, and paperwork, and ensure you're not missing any potential issues with the property. Given the property's vacancy, the sellers might be motivated to sell, which could help with negotiations. For financing, consider options like FHA 203(k) or HomeStyle loans to cover both purchase and rehab costs. This first property is a great start for your investment journey, make sure it fits both your living and investment goals.

    [email protected]614-490-1163
    Kerlous Tadres | Reafco Real Estate539 Reviews
    WebsiteView Page
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