Buying a rental house

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Hi everyone
Ok need some advice I have a chance to buy a property from my father Its his house the place on the inside is in pretty poor shape and he really wont be needing it anymore hes 83. I dont want to steel it from him but I cant give him fair market value cause of all the work it needs. How would i figure out what would be a good price to give him for it.And also how would i figure out if i can make money on it by renting it out. And where could I find out how much I could get for rent. Please help.

Check with an agent in your area to determine property value. He's 83, what's his means of support. Would it be more economical to utilize the equity in his home to supplement his expenditures. Maybe even some type of reverse mortgage in your father's name.

well I have to sell it I need to get it out of his name. and I will use the money from the sale to support him where hes at now. But I was trying to keep it as a rental property.

Just figure 70% of FMV after repairs. The best way to find out rent in the area is to call some of the people that have out for rent signs. You don't say if you have family but if you buy the home at the right price watch out for fallout from your siblings. The home is always worth more to anyone with a possible share coming to them.

Thanks OhioRealtor so If I understand you I need to get the place for 70% below fmv minus repairs to be worth it ? Or do I have room to play with that figure. And fortunatly Im an only child still not sure if thats a good thing or a bad thing. :lol: Thank everyone for your help.

You can do anything that you want with your investments. The way to be somewhat sure that you can come out with a little money if you need to dispose of the property is FMV-30%-repairs= price you pay. This is does not insure a profit but is the closest way to figure that you won't take it in the shorts if you have to sell. This figures in carying costs and costs to sell the property if you can not rent it.

Find someone to do a drive-by appraisal. Should cost about 200-400 dollars. You may also consider having a general contractor to give you a free estimate. Also find out what other houses are selling for in the area.