Pay off a reverse mortgage and resell property for a gain?

2 Replies

Hi, I’m very new to real estate investing and just getting my sea legs. I’m in rather a sad and precarious position at the moment and wanted to connect with the community for some sage advice.

My partner’s grandmother is very sick and has signed a transfer upon death deed to her daughter, my partner’s mother, to all of her property in Holland, TX. It’s a small town about 10 minutes from the historic town of Salado, TX and an hour out from Austin. Far enough from the hustle and bustle, but close enough to have easy access.

Details:
City: Holland, TX
County: Bell
Property: 17 acres plus 3 bed room, 3 1/2 baths home, plus a barn
22 acres vacant pasture land

The grandmother took out a reverse mortgage on the property at $210k. The loan has now accrued about $60k in interest brining the owed amount to $270k. They have six months to sell it upon her passing or pay off the reverse mortgage. Because they will not be able to afford the latter, I am exploring whether we should help support the loan to pay off the mortgage and sell the property. The 17 acres was appraised last at about $450k for the house and 22 acres could go for well over $100k+. Its a gorgeous log cabin with surrounding willow trees and wrap around porch. Well maintained, needs some manicuring and cleaning up but no major repairs to the property. The other option is to lease the land and house, but all signs are pointing to a sale.

Appreciate the help! Love the site and community.

Best,
Kim

@Kimberly Young Sale is always an option but looking at the description you mentioned, just wondering if you have ever thought of doing AIRBNB for this?

@Seetha G thanks for the response! We originally thought of Airbnb but it's 11 minutes from the historic town, a bit far when you consider the houses that are available to rent in main town. Definitely not out of the question though. 

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