my neighbors home is my first investment...Help!

[Raphael Pizarro]

Good afternoon my friends,

Raphael Here, new investor, and when i say new, that literally means, this will be my first deal that landed in my lap and I can really use some help on this. (lol) So quick synopsis, i have saved about 80k, and just recently my neighbor, the sweetest lady in the world passed away. We looked out for her yard and garbage etc. I met her family yesterday and they are looking to sell. I am a realtor as well, and i would like to purchase the home myself. But here is the kicker. I would love to purchase it from them on either an owner-financed deal or perhaps an all-cash offer. The home requires some work. There are a couple of barriers i am facing. and here they are

1) I just refinanced my own home and don't know if this will hinder a purchase

2) My personal mid score is literally 620 right now

3) I have no debt other than credit cards and the new mortgage payment

The homes comps i have run gives me a rough estimate of 274k

what would be your suggestions on this deal? I am still unsure of how to estimate the repair costs and ARV so using the tools are a bit confusing right now.

my questions are?

1)what would be your suggestions for financing this deal?

2) Which would be a better strategy, buying less for cash, or attempting the seller-financed route, and seek to find a tenant?

Thanks friends, I appreciate your help on this!

[Steve Vaughan]

Cool sounding deal.  

Conventional financing is obviously out and I don't see how cash is an option at the 88-92% of FMV I normally get.

Seller financing seems to be your swing.  I've only purchased one inherited SF property and it was a triplex - a long time rental. 

Heirs generally can't agree on anything but cash out, but it's your best shot. Play up your relationship with your neighbor and how you'll take good care of it. 

If it doesn't work out at least you recognized a pitch and swung at it.   No regrets.