Ways to finance: buying empty home from family member free/clear.. easy finance optio
Hi! This is a 4thhome I'm buying; kept two others and do STR. My sister is looking to unload our childhood home that she inherited 7 years ago. she had it rented out (kind of) and because she's living out of town and so much work needs to be done and she can never do it. We talked and I told her I'd be interested in it (1800 sq built in 1952; 1+ acre fields behind that are forever wild; mid-century feel to it newer vinyl siding/newer windows/new roof). I told her not sure what my end game would be yet; STR or maybe sell in a few years depending how it turns out.
Offering $120K whcih is pretty good for the conditions and worse/smaller homes selling for that. I'll likely put 60K of work into it. ARV is likely $250-280K. What would be a good option for financing it? Getting a mortgage on it, having her hold A mortgage on it, promissory note or other ways to work it? Our credit is excellent; we could pay it all in cash by shifting finances around. I like the cushion idea of giving her $50-75K and pay it back within 5 years.
For our previous investment properties we used a home equity loan and cash to buy and paid it off in a few years. Houses in our area still sell fast and limited inventory and future growth is anticipated to continue marching higher. I'm not worried about the house selling or losing value; Well always worried but anticipate and manage costs and calculated risk.