Updated almost 2 years ago on . Most recent reply
Off market duplex deal?
Location - A
Appraisal -$220k
Duplex house is owned 50/50 by 2 people. The verbal offer is currently $90k to 1 owner for their side, which will be vacant, and then $40k offer to the other sides owner with a rent free, tax free, maintenance free live in clause until they pass away. So making 2 offers to 2 people, one to sell completely and one to allow them to live there forever, but I would be 100% owner of the duplex.
Both sides need renovations at about $50k each. Rent after renovations is $1,500. All cash deal, no mortgage. Thinking of doing a HELOC to cover the renovation on one side after purchase, so I don't have to use cash. No red flags in home inspection.
Thoughts on if the numbers make sense here? Hard to calculate the risk as you can’t determine how long the other person will live. They are 74 in not so great health.
Thanks!