Cash Cow or Money Pit?
I found an off market 4BR/3BR home in a 'B' neighborhood. The home has sat vacant for 20 years (yikes!) but small stuff has been addressed and maintained. The home ARV is around 450k-500k conservatively but it likely needs ~75k-100k worth of work. I still need to get an official home inspection. The home also has bad neighbors with a distressed property. The owners have a bunch of old stuff left in the house and want it out of their life.
Plan: Buy and hold rental
Second exit strategy: fix and flip
What would you offer them? Any advice or experience for renting with an unsightly neighbor property or repairs with such a long vacancy? I expect renovations to take the better part of 1 year which eats up a lot of opportunity costs with rent.
Ultimately, I want to make this easy for the owners to sell and prioritize the relationship with them. With the market cooling, rates increasing, and the high renovation costs, I feel that I may be in a position to make a creative offer with seller financing that gets them paid monthly with less money down up front for me. Thoughts?