NEED ADVICE - Moms house is the worst house on a nice block - flip and sell?

[Chanel Pearson]

Hey everyone,

So I've had a scenario close to home come up - my mom's house. Her house is the worst one on the block, has a hole in the roof, a hole in the floor and all floors, walls, etc need to be updated. It appraised at 89 K while the rest of the street comps are 200-300 K. My mom is in 10 K of CC debt and has 2 contingencies on the house (30 K of work the gov did for her as a grant, because the house was falling apart, still is technically). She has to pay that back if she sells or rents it I believe.

I am trying to help her get out of a vicious debt circle and also help myself - so we want to fix it up. The options we have is we could get another loan onto her mortgage for the rehab but i doubt with her debt she would be approved. My only option then is for me to take out a home loan... eeek??

We plan to do most of the work ourselves but hire out for the leaking roof, and maybe some bathroom stuff. 

MY IDEAL: is that we turn this into a rental property (it will rent 2000-2500) we have a housing crisis in Nova Scotia and this is a desirable area. Her mortgage is only $300 per month. We cash out refiance the equity we put in to use as a DOWN PAYMENT for a duplex in the area, she moves in 1 side and we rent out the other. We have 2 incomes, 1 side of duplex and her other house.

Tell me - am I off side with this? We have realtors and an investor trying to buy this house from her, and they want to fix it up and seller finance it back to her. But that doesn't help her, or us??? It keeps her in a vicious circle of debt.

I have watched so many videos and now that this is potentially happening im overwhelmed. Could I even get approved for a duplex with the other rental??? Would there even be enough to pull out from that house??? Is it best to flip and just sell it and start fresh? So many options I am so overrwhelmed and so is my poor mom. I just want her out of her debt, and I feel like some people like realtors are trying  to take advantage of her.

We are waiting to hear back from 2 companies about quotes for the roof and floor - and what else might need to be urgently fixed.

Any feedback/advice is appreciated!!