Ideas to purchase the home we are renting from my parents
My wife and I have been renting my deceased grandparents home from my parents (inherited 4 years ago) for the past 3 years. They were going to just sell it but being newly married, they let us live there and just pay enough to cover property taxes and give them a little extra. The house is paid off so whenever they do sell it, it'll be pure profit for them, except for taxes of course. Essentially, houses in this area (SE Portland just down from Hawthorne) are selling for between $500-600k, renovated. This house needs some major work but my parents have agreed to let us purchase from them at $300-350k. We're overestimating but we would budget another $100k for renovations to update it and completely modernize it. Our goal is to walk away with a $100k profit or more to put down on a larger home since we have our 5th child on the way. It's a 3 bed, 1 bath home, 998sq ft & built in 1953. It might appraise at $350ish so we should have instant equity. We've been taking care of this house for the last 3 years and since we pay such low rent, we cover any expenses that come up. But my mother needs to retire soon and them selling this home will go a long way toward her retiring. So with that back story, we want to buy it obviously but we have some challenges that I'm looking for a solution to. The only solution I can conceive of is finding a private investor to finance the whole deal. I currently own an auto glass company here in Portland so we can't get a typical mortgage, nor do I want to report more income than I need to just to buy this house, if we can avoid that. We don't have much more than about $10k to put down and that's if we don't have to inflate our reporting to the government (decrease our deductions. Don't worry, it's all legal). Credit is just over 650. And we have our baby due in December. So I'm looking for a solid investor or company to work with who can get us access to funding and resources or any other ideas anyone else may have on here. We've been in business for over 3 years now and every year has been growth so we have at least some experience in business. This isn't just a shot in the dark. We've been watching the area, evaluating and scrutinizing this house for the last year as we've been building our company and we feel extremely confident that this is a great deal. But we need funds! We do have an estimate sheet available for all updates we would need to make. Any input would help. Thanks!
Shaun DeWitt