Join me on the (literal) Deal Of A Lifetime - 10% CoC annually!

[Jason Eyerly]

Hello BP! So, here's the low down. My dad passed in July of last year while I landed my dream job(s) of Flight Paramedic / Flight Nurse & Cardiac ICU + Rapid Response RN. On a whim I absorbed the expenses of the estate and daily operations to keep things going. If you check some of my more recent posts you can get an idea of where I'm at in the RE world. Anyways, when he passed he died intestate. Given the unexpected and quick passing I'm left holding the bag. Unfortunately, his abhorrent exwife is the mother of my wonderful and brilliant 13-year old sister and is insisting I sell everything, our childhood home included. The only way I can prevent this is by paying off all of his debts, and her portion of what's left which I plan to lien against the property but that makes getting equity and such out of it later a pain so I'd rather pay her portion into a trust fund that will generate income for her. All of this being the reason for the deal. Ironically, the Garn-St. Germain Depository Institutions Act of 1982 will allow me to inherit the mortgage as is which is where the opportunity for a deal comes from.

Over the past 12 months, I am $40,000 into the estate which I am owed as administrator. If possible. I'd like to get this money back OUT to use towards other business ventures and real estate investments/deals. Notably, an FHA multi-family househack back home in Charleston, SC and subsequently fix & flips. Why don't I just refinance? Well, because I can't make any adjustments or negotiations on the mortgage until the court makes me a successor in interest and they won't do that until I pay the debts! As I've jumped back into BP and devouring BP books it clicked - instead of drowning and working my life away to try and pay this off, why don't I try some creative financing!?

I've paid:

-$9,500 Vehicle Loan
-$24,000 in Mortgage Payments (Through August 1st)
-$2,000 in Landscaping
-$3,000 HOA Lien
-$2,000 Electricity
-$1,000 Water
-$1,000 Gas

What Needs To Be Paid For Deed To Transfer To Me:

-$13,000 Probate Fees
-$13,000 To IRS
-$20,000 to $40,000 In Credit Cards; Probate Attorney Has Negotiated Down; Final Number TBD
-$20,000 (Likely Less) To My Sister; Likely less after the expenses

Total Cost:

-Without Me Getting Reimbursed: $46,000-$66,000
-With My Reimbursement: $86,000-$106,000
--This still leaves around $100k in equity and great CoC return!

The Property:

-4 Bedroom / 2.5 Bath 1,800 Sq. Foot Home in Las Vegas, NV - 89179 near Cactus Ave. & Rainbow Ave.
-Comparables around $450,000 with Rents @ $2,200-$2500
-HOA
-Originally Built 2007 / Second Owner 2010 (My Father)
-Complete remodel of downstairs
-Finished backyard
-$250,000 Mortgage @ 4.5% = $1,750 / Month

https://www.zillow.com/homedetails/7319-Pepperbox-Ave-Las-Ve...

What I'm Willing To Do:

-Add You To Deed Without Mortgage Obligation
-Retain Right To Refinance/Buy Out Other Party At Any Time
-Property Manage LTR
--This area doesn't look so great for STR but I need to do further analysis to be sure
--Transfer most/all rent proceeds less CapEx

What I will Not Do:

-Sell
-Relinquish Ownership

Ultimately, I would really like to get my capital back as I said for other business ventures mainly REI - my own FHA house hack, fix & flip reserves, and I would like to rent out this property as it wouldn't bar me from getting an FHA loan. If I absolutely had to give up the $40,000 I'm owed by the estate then I'm willing to do that but it's last resort. I need more cash flow than I can get from a long-hold LTR at this point in my REI venture. The $40,000 allows me to have a significant savings and diversify my income streams and finish my commercial pilot's license and pay for my Nurse Practitioner program starting in January.