Advice - Buying parent's house

[Krystin Nangcas]

Hi, newbie here and just started learning all about RE.

My parents are willing to sell their house to me and my family for way lower than its market value. It's a big 5 bed / 3.5 bath house -- but lots of work to be done. We are either thinking of buying, flipping and selling it. Or buying, flipping & live in it (main reason to live in it: close to in-laws for child care, possibly lower mortgage payment compared to current house. However, definitely not our forever home.) Either way, we'd like to buy it just to get our feet wet in real estate.

Just wanted some insights, opinions, and advice to see what would be a better investment. Or initial steps I'd need to take. Thank you!

[Kevin Manafi]

Hey @Krystin Nangcas, having your parents offer you a nice off-market deal is a great way to get your real estate investing career kicked off! It's hard to advise you on a course of action without knowing your personal situation, finances, goals, etc. as this is a very personal decision. If you don't have much prior real estate experience or specifically any flipping/renovation experience, a live-in flip would probably be easier for you and your family. You can live there for a few years, take advantage of being closer to the in-laws and the lower mortgage payment, and do the renovation over time so that it's not as overwhelming or capital intensive as doing it all at once. Your options then stay open to either refinance and pull some cash out in a few years while keeping the property as a rental, or just selling it outright and taking the equity.