Updated over 8 years ago on . Most recent reply
Potential nightmare or great deal?
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
Most Popular Reply
I would put an offer in subject to the property being vacated prior to closing. Let the family the seller's problem, not yours....
I would NOT purchase this property with people -ex-family- living in it unless you want to spend some $$ to get them out.