Questions about buying from family

[Chris Wallace]

Hi all!

I may have come across my first deal. One of my inlaws husband recently passed and she is considering selling her home.

The property is SFH 3 bed / 2 bath it is located in good neighborhood that is currently undergoing alot of development and investment activity. Its worth about $450k as is with a current mortgage balance of about $380k. ARV based on recent sales is about $515k

My wife and I have expressed our interest in buying the home for a rental but we have some concerns.

firstly financing we know that we won't qualify for conventional financing as we don't have the funds available for a 25 percent down payment for investment property.

Second most lenders won't fund a non arms length purchase.

Any insight into finding financing for something like this?

[Jean Bolger]

That's an expensive house for a rental. What do you think you'd get in rent? I'm having trouble imagining how this could work out well for you.

Also- be very careful buying from a relative. If you talk her into a low price and then turn around and sell for a good profit that could create a lot of bad feeling. If you can genuinely solve a problem for her by buying the place then that's a different thing, but.... it's easy for that to get complicated too. Just some food for thought!