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Updated about 3 years ago,
What could go wrong? Buying 50% of an airbnb Subject to...
The seller's husband passed away, and this year she has been trying to sell the house. Problem is, her husband didn't have a will, so his half went to 3 heirs.
For her to be able to sell it, she needs the kids' signatures. Her and her real estate agent hired an attorney, a private investigator, and has even reached out to Texas senators trying to figure out where these kids are, and nobody has been able to get in contact with them. They think the children (who are all adults, not actual children) are living on the streets in either Germany or somewhere in the US.
I've been working with both her and the realtor, she says that she is moving back to Germany one way or another and is about to quit paying the mortgage because she has no other option, and doesn't want to rent it out.
My attorney says it is possible that I can purchase her share subject to, it's on a va loan and in total there is about $140,000 in equity, with the monthly payment being ~$1700. It's a 4/4 3700 sq ft, with no property in the neighborhood selling for less than $410,000. I am wanting to form an LLC separate from everything else I own, help her out by cashing her out on what little equity she has and keeping the property as my first property, and AirBnB it. On AirDNA, it projects an annual revenue of $104,000 with $30,000 in operating expenses.
For the monthly income vs expenses, even if I were to have to give up 50% it seems like a really good deal. I am paying closing costs, attorney fees, and cashing her out. All in all, I am going to be spending $20k.
To me, this seems like a pretty low risk opportunity. It does to some folks in my network as well. I want to take action. What would you do in this situation?