My grandfather has a 3bd 2ba 2200sqft house in Mineola, Tx. He plans to leave it to my Mother and is wanting to just give it to her now.
He owes back taxes on the property and it's in need of some serious repairs. My mother also owes taxes but has no assets to put a lean on.
That being said, my plan is to buy the house from my grandfather for the cost of renovation. He just gives the money to me that he receives from the bank for the sale.
I plan to use the money to convert the house into a tri-plex. The size and way the house is built, I can easily turn it into 3 one bedroom units that will rent for 800pm all bills paid. Mother stays in one unit and I rent the other 2 units out.
I estimate Reno at about 60k and ARV 125k. The 1600 more than covers expenses and cash flows. Mom's happy and I'm happy.
Should I go conventional mortgage route or look into HML for a BRRRR like strategy? Or am I missing something altogether and need to go another route?
looking for any all thoughts, help, info etc. I can't screw this up. I want to get into full time real estate investing and I need this to work right to jump start my investing