Opportunity to buy my first income property
I have an opprtunity to buy my first income property and could really use some advice on what I should do. (It's a bit of a complicated situation, but i'll try to explain it as simply as I can.) I have sister who owns a property in Galveston, TX. one block away from the beach. (Her next door neighbor has been renting out his house as a vacation home for about 10 years now and has been doing well.) Anyway, My sister's property consists of 1 big house in the front, and a duplex in the back. She's been living in the bottom apartment, and renting out the top one. She doesn't have the money to fix the front house,so what we're thinking about doing is for me to buy the whole property, and with the profit she makes, she will then use the money to upgrade and fix the house and upgrade both apartments in order to use them for income. She is in danger of losing the property, and I am trying to help her and also turn it into a money making property. The bank has already approved me to buy. Some of my questions are:
1. Is this a smart thing to do?
2. Since she is pretty much investing right back into her property, how does work when money starts coming in?
Any advice would be appreciated!