My mother took over the delinquent tax payments in order to save her childhood home for sentimental reasons. Her idea is to fix it up and live in it ONLY. I do not know why when my sister, father and I show no interest in living or moving back to our hometown. Pretty much everything in the house is broken from A to Z. It is also a bottomless pit of back taxes. She does not want to fix it up to rent it out and make money for all of us. How do I change her mind??? PLEASE HELP
In a perfect world, it is a good property to use the BRRR strategy on and generate income for all of us. It's in an older blue-collar area of my hometown with little to no crime. My hometown has a population of 35,000 with its own major employers and own unique economy.
@Juan David Maldonado , Sentimental value is going to be a tough one to over come, however I would run the numbers and show her the possibilities. You may need to walk her thru the entire process, but if it's worth it... maybe she'll get on your page, especially if it pays for her living standards. You may also want to try and convince her that it will still remain in the family, and that it will for the foreseeable future. I don't know that I personally would attempt this action though, but as long as you can sleep at night. Good luck!
Put the numbers on paper. You said, "it is a bottomless pit of back taxes" and "everything in the house is broken from A to Z" which sounds like a money pit to me. How are you going to afford the back taxes and renovation so it turns into a cash-flowing property?
Mom has a sentimental attachment. You need to show enough cash flow to overcome her emotional attachment, which may not be possible.
Wait till she realises her mistake herself then step in to help. For sentimental reasons I would steer well clear until she is near drowning.
My guess is that numbers will be irrelevant until she feels the pain. Do not under any circumstances enable her. Crule to be kind when it comes to sentiment and money. They simply never mix.
The years of future income are less personally attractive to someone with less life to live.
What do you have to offer?
Do you have experience in real estate?
Have you run numbers on the property from an investment standpoint?
I am a high school teacher with a good income. I want to finance the project one step at a time with my salary so I do not have to take on a loan to get it up and running. No major experience in real estate besides my own research and reading books. I have book smarts and street smarts. I am working on putting together a document to show my mother the numbers on the property.
Thank you. Awesome advice.
Thank you! I understand what you mean.
Thank you for your advice!
Sounds like a tough sell; if she's sentimental about the house, she probably doesn't want to see it become apartments for strangers.
I can't even convince my friends with no kids to live in duplexes... they are just too content to pay $1,500/month for the privilege of not having to hear footsteps above them every once in a while.