Investing in an inherited property
Bonjour compatriotes d'investisment Immobilier!
A potential(ly great) opportunity just presented itself to me through a friend. Her neighbour unfortunately passed away from a long battle with cancer today. Death is obviously difficult for any family, as is the following estate proceedings and such. He has 2 surviving kin, one of which is institutionalized, and I'm fairly certain his (middle aged) daughter will want to sell.
What makes this a possibly great opportunity is the fact that he was the first owner of the home, built in the late 50s early 60s, and owns the property free and clear! It is located in an area I am very familiar with, in a high income neighbourhood on a quiet street near parks, schools and all other amenities. The house is most likely dated, as I presume he has not modernized it in recent years! I'm guessing we're dealing with a C home in an A neighbourhood in the west Island of Montreal! There is an obvious potential to add value, as well as a motivated seller. I would look to do a few cosmetic repairs and flip or a lease option (rent-to-own), with the possibility of a refi and rent as a third exit strategy.
This would be my first real estate deal. I have been consuming knowledge for over a year, and it's time to finally pull the trigger! The question is: how should I proceed? Death is obviously a touchy subject and cannot just be brought up in conversation casually! When should I approach the next of kin? How should I approach the family? Should I attend the funeral (to pay my respects, obviously, not to talk business)? How do I initiate business proceedings? Also, what would my next logical step be? I assume pull comps and begin to look for a lender?
I'm sorry if these are basic questions; you think you're well prepared and ready to dive in until it's time to dive in! Lol.
Thanks in advance for your help Quebec family!!