What are my options on buying a friend's family member house?

[Robert Loveless]

Hello BP, I’m fairly new to real estate investing however I’ve always been interested. I live in San Diego County and have owned my 2 bedroom 1 bad house for about 5 years now. At this moment I believe to have anywhere from 100 -130k in equity if I were to sell. I’ve been slowly but surely fixing my house in case a great deal for house hacking arrives.

Well sadly my best friend grandmother past months ago. In the will the house is to be sold and split 3 ways between my friend’s mother and his two aunts. The two aunts are well off and live out of state and just want the money. However my friend mother would like the keep the house in the family but knows her and her son can’t afford it. Would it be a good idea to buy it and if so what legal steps would her and I need to do?

I would love to house hack this 1800 sq ft 4 bedroom and 3 bath but it’s apparent the house needs work. Most of the house is dated and needs a new roof, new flooring, bathroom and kitchen remodel. However the house is structurally sound with houses selling in the neighborhood for 600k+. I make about 85k a year with great credit but my friend only makes 30k with bad credit. After discussing with my friend the plan would be house hack with other roommates for a couple of years then sell or rent out later.

I guess my question is what would be a good price to offer and what legal issues we would need to cover? They plan to sell the house in the next 4-6 months.

Thanks everyone