Not sure if this would be worth it for us to buy
My husbandʻs grandmother wants to sell her home on the Big Island of Hawaii. She has a little over 2 acres with 3 permitted homes on them. 2 of the homes need to be rehabbed as they are not livable, we came up with probably about $180k in renovations. The main house is older, it was bought in the 50ʻs, there were some additions added to it but everything inside is original. We would love to keep it in the family, try to renovate the 2 homes to rent them out long term and the main house slowly work on upgrading and then eventually renting this one out too.
Iʻve been watching videos, going back and forth on the calculators, we didnʻt expect this to come up as an opportunity for us, but the biggest thing is she will want market value for it and if we canʻt do it, then Iʻll list it on the MLS. We want to come out of this with little to no money out of pocket, but we may have to. Does anyone have suggestions as to what to do in something like this? We donʻt want to short change her and low ball my husbandʻs grandmother as she is using this money for her retirement home that she and her sister will be living in on the mainland.
There are a lot of unknowns in your question... Are all 3 homes on one parcel of land where you could get one loan for them? What is market value when 2 of them are unlivable? Is she putting a value on the 2 non-livable homes, or just wanting money for the value of the big home?
At the end of the day, it takes money to make money. So I don't see a way to not come out of pocket if you want to (A) buy them, and (B) fix them up. Your options there would be to get a loan to buy them... and if you could move into them you would only have to come up with about 3% down.. but would then need money to fix them up. There are some loans that include money to fix up properties like a FHA 203(k) loan. I'm not an expert there... I just know they exist.
Otherwise you might be able to partner with someone that does have money (an investor) where you joint venture the property... maybe you buy it, and they fix it up and you split the profits or something like that? The other option would be to wholesale them and sell them to an investor that will cut you in with a commission for bringing them the deal.
Hope it helps!
Randy
@Shenell Caldeira - Thank you for connecting! I got some ideas for you to make it a win/win and we may be able to help! We got all the islands covered! Please PM me and we can discuss some options. Mahalo and Blessings, Joel
