Is this even a good idea/deal

[Joe Hausen]

Hello I am new to investing and have been trying to learn as much as possible in the past year.My entire family knows of this and my in-laws came to me with an idea to "help" me and also would be helping them with a Real Estate deal.

Back Story- My wife's grandmother passed away last year and the estate, two properties, are to be sold and the profits spread out among the 6 children. One of my wife's uncles was in charge of one of the properties which is zoned for commercial/residential, it is a 1708 Sqf office space/small warehouse on .36 acre lot.Which with some research it can be split into 2 lots.He let the property go to the dump, needs a new metal roof, and gutted, replace plumbing/bathroom, replace electrical etc...

Now my wife’s Aunt is in charge of the estate and she was the one who approached me.She said they will "sell" me the property for $30K (estimates from Real estate agent say property is worth $43-$53K in current condition) Which then I could clean the property up and try to resell with the improvements.

Now if I did replace the roof make the inside look nice and clean the overgrown landscaping I was told (real estate agent) it could get about $60K, but there are back taxes and liens on the property as well.Plus closing cost for when I sell it, I have run the numbers and it seems that I would MAYBE make $3000-$9000 conservatively.

But I am real concerned over the fact that it is used as an office/commercial, and wouldn't this limit buyers?And even if an investor wanted to put small apartments/duplex etc.. wouldn't they not care about the structure and then the property is worth less to them (property value is $40K)

Is it even worth the time to attempt to Flip a property like this?

[Linval T.]

@Joe Hausen - Good question, but, it seems like you are not totally at ease with this undertaking and rightly so.

My take is that this property might not be worth your time and effort to acquire, pay the overdue taxes, refurbish and sell for a measly amount of profit if not a loss. 

The residual amount that you project for cash collection is borderline, or just above the profit margin and might even be headed in a negative direction.

I sense that you are caught up with the family aspect of it and believe that you must satisfy their request. 

No, you don't have to do it if the project is not a solid business decision to pursue.