Buying out Siblings of Inheritance properties

[Karim Baker]

I have the opportunity to buy out siblings for two homes in San Diego. Both need repairs 75k for one 150k for the other, both should be worth at least 700k after repairs. I can do a 203k loan for one, but I don't have capital for the other. What's would you think is the best options. We have family living in the other and I was asked to buy both and let them continue to rent. Both have smaller mortgages. I was thinking of doing the 203k for one and seller financing for the other. Figured if they wanted me to deal with the family renters we can negotiate discounted terms.

[Steve Meyers]

@Karim Baker what's your goal with the properties to sell them for top dollar or keep them as rentals or keep one as a primary and the other as a family rental? There are a lot of different options out there. If looking to sell one of them and the property is vacant you could use curbio. They upfront the costs of rehab and get paid back once they property sell from the proceeds. If you're looking to owner occupy one of them then a 203k loan might be a good way to go. That's the FHA loan product for rehabs there is also the homestyle reno loan which is the conventional loan product.

As for the family rental property see if you can negotiate some type of seller financing terms for that one where you can still cash flow on the property without having to raise the rents, it sounds like there is a very small loan amount left on it so that would probably be your best option if your family members want to stay and keep renting the property.