Inherited home with structural damage

9 Replies

Looking for some insight.

My mother lives in a home built by my great grandparents, she is getting older and cannot afford repairs. There is nothing owed on the home, and she has offered to put the title in my name. I’d like to fix it up to rent or flip.

Some background on the home: it is in Louisiana and is on piers. The home has a broken seal, the original wood floor has started to buckle, and there is asbestos siding on part of the home.

Just wondering what would be a starting point here, our plan is to get it inspected but other than that we are lacking experience/direction. My main concern is that the cost of repairs would be more than the home is worth. Any advice or tips would be greatly appreciated.

Step one: find out what the home would be worth in good condition.
Step two: find out what it would cost to fix the home.
Step three: decide if it's worth fixing.

Originally posted by @Zachary Morgan :

@John Teachout sorry if this a dumb question: would the bank tell us how much it would be worth in good condition when we get it appraised?

Not a dumb question but the answer is no. You would either need to get an appraisal done (probably about $400) or maybe a realtor could give you some numbers. A bank appraisal is usually pretty superficial and they're looking for an "at least" number to protect the bank's interests if the loan defaults. It doesn't necessarily convert directly to market value.

Get a few estimates on people that specialize in foundation repair. Don't just go with the first person. Have a few contractors come out and give you bids on the other stuff.  Look at your local houses in the area to see what they go for.   You should be able to sort by houses sold last and narrow by area.  Zillow also lets you see when a house was sold last, but I don't find their valuation of a property very accurate.  What the city says it's worth on the tax statement is a good starting point.  It will be worth more when everything is all fixed up.

Don't forget to check what rentals go for in the area.  If it needs 50k in work but only rents for 900 a month it may not be worth it.  Even if it's not worth flipping it still could be a good rental for you.  Having a contractor go through and fix all those things should lower your repair costs for a while if you decide to keep as a rental.

Originally posted by @Zachary Morgan :

Looking for some insight.

My mother lives in a home built by my great grandparents, she is getting older and cannot afford repairs. There is nothing owed on the home, and she has offered to put the title in my name. I’d like to fix it up to rent or flip.

Some background on the home: it is in Louisiana and is on piers. The home has a broken seal, the original wood floor has started to buckle, and there is asbestos siding on part of the home.

Just wondering what would be a starting point here, our plan is to get it inspected but other than that we are lacking experience/direction. My main concern is that the cost of repairs would be more than the home is worth. Any advice or tips would be greatly appreciated.

Is it in NOLA? Was it affected by a hurricane? Has it ever flooded or experienced mold?

What do you mean by a "broken seal"? Do you mean sill? Foundation repair on a pier and beam foundation is easy, and much less costly than a slab house. If you do have the foundation repaired, be sure to use a reputable company that provides a lifetime warranty on their work that is transferrable. Wood floors can be patched and redone. The asbestos siding doesn't necessarily need to be removed, as you can go right over it with new siding in come cases. But if you were to flip it I would have it removed and replaced. You would need an asbestos remediation company to do this and it can be expensive. I would suggest getting a reputable contractor out to give you an estimate on repairs as a starting point, then get with a local realtor and have them help you determine an ARV. Where is this property located?