Convincing family to rehab and rent instead of sell

[Bryan McLean]

I have a family member who owns their house outright and are retired. They will be looking to downsize in the near future and are expecting to sell their house in Bergen County to buy a townhome or condo somewhere that doesn’t require as much maintenance. I’m just starting to learn about RE investment and would love to keep this property in the family for generations to come. It’s an outdated home so major rehab is required to get it in prime rental condition. What recommendations do you all have to facilitate something like this and best practices to rehab and then rent it out? All while convincing them this is a good idea. Thanks

[Karen F.]

DON'T!  If you want to do this (and I agree, it's probably a good idea), YOU get the money together and buy it from them, now, at a discount.  I'm sure that whatever they want for it is probably significantly less than it would bring on the open market.  Then YOU do whatever YOU want with YOUR property.

Being an absentee landlord is tremendously high risk for any newbie, not to mention someone who just wants to move on to the downsizing, retirement stage of life.  You're young, you have energy.  Get a homeowner's loan, buy it, move into it, househack it to pay the mortgage, and start renovating.