Unique live in Duplex Opportunity

1 Reply

Hello all- 

I am very new and obsorbing info while getting to know the local market here in Dixon, Il. Convinced first home will be a duplex live in and here I have a unique opportunity to buy a property from my father. It is a large duplex (2) 2 bedroom, 4 car garage, on 2 acres near a developing commercial area. Property would be appraised commercial. Walmart with in walking distance.  Banks, clinics, retail and restaurants all in the area/ walking distance. Appraised at roughly $400,000. 

I currently live in the downstairs unit of this property. I'll try and roughly explain terms of the deal with my little education. My father and  I would agree on current value based on appraisal. We then would agree on a purchase price. For this discussion we'll say value $400,000 purchase price $200,000.  In purchase agreement it would state that upon my sale of the property I would owe my father or his estate the remainder of the appraised value at time of purchase. I buy for $200,000 sell down the road for $450,000 I pay father $200,000 to cover the $400,000 and pocket remaining $50,000.

The utilities are split, I can get $800 a month for rent per unit and rent 2 garage stalls for additional income, though I would occupy one unit for at least 1 year. 

What are some things to consider? Should I treat this just as any property analysis? Anyone else had similar situation structured? 

I'm an open book! What are your thought on this. 

Thanks BP!

Any input from anyone would be great! 

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