Potential deal - Advice

[Jordan Whitworth]

I currently have 1 rental property in Conyers, GA that i am house hacking. I purchased last year on the MLS. I have a potential for another deal but it's not on the MLS and would be off market. I have a couple questions about the situation. It is actually a property that is in my family, my grandfather passed away last year and the property is left to my dad and his two siblings. They aren't interested in real estate at all and haven't real done anything with the property since he passed away. i mentioned to them that i would be interested in purchasing. It's in Williamston, SC and it's a 3 bedroom 2 bath. I'm thinking first i need to find a real estate agent in SC to get some comps for how much the property may be worth. I'm going to discuss with my family this weekend but i may offer what is left on the loan (not sure exactly how much is left but he lived there for 20 years before passing away) and tell them i will take care of cleaning out the property and they don't have to worry about it. I believe i will be able to purchase well under market value. I'm going to check out the property this weekend while i'm in Greenville, SC for a wedding.

I'm thinking of using private or hard money to purchase. Then find a property manager in SC to get the place rented then refinance in 6-9 months for a cash out. 

Does anyone have any advice or comments? Is the it a conflict of interest to purchase from family members? I want to make sure all the loose ends are tied up before i dive into this.  

Thanks for the help! 

[Georgui Kasaev]

Hello @Jordan Whitworth

Have you thought of not purchasing the property from them? Instead, taking them on as equity partners? offering to do the rehab work and selling it and then splitting the profits? All involved might be interested in that. Also, this could potentially solve your private or hard money debate. 

Working with family is tough, however, if everyone is logical and you make sure to disclose all aspects of the deal and make sure everything is very well documented and spelled out in contracts, then it is very possible. 

Good luck would love to hear how it turns out.