How should I handle this property?

[Bridget Huebner]

I need help deciding what to do with my next property.

So picture me this:

A 4 bedroom, 2 bath house in a desirable Redding, California neighborhood. Just down the street from a new popular shopping outlet. 1,900 Square feet at least. It's owned by my father and he only owes $78,000 principle on the mortgage, paying about $900 per month.

Its ARV would be around $330,000.

What's the problem then? Everything is wrong with this property. Nobody has lived in it for the last 7 years and has kind of been a hoarder-esque storage shed for my father.

Rotting subflooring (water damage) in the bathrooms and kitchen

AC and Heater both don't work

Tons of junk sitting in rooms

Busted windows and door frames from squatters breaking in

Everything is original to the 1970's when it was built

Rodent and termites, and likely a number of other issues plague this home

An unknown tax lien amount from a divorce

My father said he would sell me this house, and would be willing to work with me in any way so we both benefit from this. This house was my home for the first 17 years of my life and I personally want to see it thrive. I want to own it and have it rented out.

Should I pay contractors to get the home move-in ready and split the profits 50/50 with my father after it has been rented out?

Should I Subject To and take over his mortgage, and pay him out for his equity later on?

Should I pay for the repairs that will allow it to qualify for a conventional mortgage, then buy it from him outright?

There are so many ways I can go about this which makes it that much harder to decide on my plan for it! I would be able to borrow up to $75,000 from a family member and have $15,000 accessible funds right now. I don't plan on buying this house until late 2022. Does anyone have ideas for what can I do to make this work for both me and my father? What would you do?