Help structuring a deal amongst friends
Looking for some help since I've only done MLS/Bank financing deals.
A friend has a condo that held a family member for years and does not want to be a landlord and wants to sell. Below are the details, we are looking for a way for both of us to win in this if possible.
- The assessment is $180k
- He wants to walk away with $160k
- He owes $50k on it
- He wants $50k in the near future but doesnt need the full amount right away and would rather save the taxes
- There needs to be $30k in remodel prior to renting again
- Rents will be $1.6k/mth which will cashflow slightly given conservative numbers
- I am a contractor and my thoughts were the following but feel there's some holes that need filling in.
- I would take over his monthly payments while the rehab is being done.
- I can cover the rehab costs out of pocket.
- I get it rented and then go to the bank to finance it.
- What I'm not clear on is the best options at this point.
- If he doesn't need the full amount immediately is he/I better with him holding the note from a gains perspective?
- What would be the structure needed for me paying the payments and doing the repairs? Is that a lease option?
- Thanks in advance.