Potential nightmare or great deal?

[Joseph Delarosa]

Found a potential deal today Before I get chewed up and spit out, I'm just putting this out there, I'm a Cherry when it comes to investing. That's why I'm asking for lessons learned, and for thoughts that haven't come to my mind yet. Here it goes. Home- fixer upper. 3/2 1200sq ft Comps- range from $85k-$95k Sell price- $16,000 (could drop lower) Taxes owed-$3,100 Closing- $2,200 Home is livable. Contractor estimates $23K and 10 weeks for repairs to get the $95k asking Reason I haven't pulled the trigger. The previous owner of the home passed away and left it to her daughter who lives across the country. The daughters(new owner) uncle, cousin, and grandmother live in the home rent free and refuse to move. The family living in the home said that they are entitled to first option to buy the house, but aren't really sure they have the money to do it. So I guess my concern is how to go about the deal. Do I purchase and owner finance back to the family? Purchase, evict, flip? BRRRR? I'm open to all options, but the rental market here is definitely by far the most favorable. Homes don't sell quickly here. Besides the investment part what concerns should I consider in the legal realm? How could I go about this without the current tenants destroying the home? I'm learning how complex this can be. Thoughts, concerns, suggestions?? All are welcome. Let the growing pains begin

[Mark Wolffer]

So...who has title? Did it go through probate? How do you know the daughter owns it?

Can you afford to go to court? Hire an attorney? and deal with the potential trashing.

Emotion kills the potential investor....if you don't know all that's required to come to a decision, just move on to the next property. 

Your property is liveable...but required all that work? Nope...it won't pass inspection and that 10 week rehab sounds fishy. If the contractor has 1/3 expenses, 1/3 labor, and 1/3 profit............and he wants 23k for 10 weeks of work?...that means he is willing to work for two and a half months for only about 8k in profit....that doesn't pay the bills, too cheap. By the time its half way done...he will approach you with another 20k needed for all the new unexpected problems that he will surely find.