Inheritance

[Marion Edwards]

I recently inherited a 1200 square foot 3BR SFR in Flint, Michigan. The house is free and clear with the exception of a water lien and back taxes of $4000. The house has water damage from a leaking roof and I've received renovation estimates of approximately $20,000. I'll have to finance this work as I don't have the cash to get this done. The ARV of the house is only $39,000 but I'd like to rent it out for $700 per month. I'm still a rookie investor and was wondering what you seasoned pros thought about this deal. Thanks in advance.

[Tevis Verrett]

Originally posted by Marion Edwards:

I recently inherited a 1200 square foot 3BR SFR in Flint, Michigan.

Brother Marion,

I am enduring the SAME THING with my late mother's home here in Los Angeles, CA. I see your rehab and raise you my felon crack head brother that I am in the process of evicting.

We perhaps have our legacy in these properties and our start in the real estate investor market.

We go through this together man. I have been investigating hard money for renovation costs and have found them between 9-13% with 3-4 points plus $1600-2000 in upfront fees.

Ugh, that is expensive.

I would prefer to run up my credit cards.

My master plan is doing the bare minimum and doing a deep scrub, paint, flooring and putting renters in there to generate positive cash flow.

With the golden goose laying eggs, I will slowly improve the property.

Marion, for Hard Money, look up the Norris Group found under "Resources" in the header. I have heard good things about them, I have yet to use them.

If you dig deep enough for your leaky roof, you can get it done for $3,000-4,000. Squeeze for wholesale pricing in both labor and materials and get your hands dirty; you may be able to turn this around for a LOT cheaper.

I would ask my wiser brethren and sistren for any advice you might have for Marion and myself.

Blessings all, and look forward to your replies,

Tevis