So I live in New Orleans and my mother is elderly 76 y/o and as alot of ppl her age she's on a fixed income. Her house is still damaged from hurricane Katrina. Pretty deplorable condition, but it's a good size house 2400 sq ft. 4b 2 1/2 bath. 2 story built in 1929 and there's an entire side lot that was never built on that she owns as well. Current condition value is around 350k fixed we're talking 800k or so. She has expressed to me she wants to live out her days there but she wants to transfer the property to me. So I'm thinking hard money loan to get it fixed then refi. But after that I figure home equity and some house hacking i could maybe get a 4 plex or so to start my adventure into landlording. Just trying to get some insight on what people think. This house needs leveling electric plumbing and a good bit of love downstairs inside. But beautiful home heart pine floors original. All plaster and original woodwork. Thanks in advance for reading this.
I would get a contractor to give you an estimate on the cost to fix it up, unless you are planning on doing the work yourself. In that case, take the time to formulate a good estimate of what it will cost. At that point, you know what kind of number you are looking at. Instead of a hard money loan, you might consider severing the side lot and selling it and use the cash from the sale for the repairs.
I'll be using a contractor. I have a guy with a solid references and background and he's even done work for friends. So far in my head 100k is my ball park. I tried to talk to her about that. She doesn't want anyone that close but the garage is huge behind her house I thought about looking into adding a story on and making a 1b 1b rental to help supplement her income so she is independently able to live there.
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