Buying a vacant home of my parents (paid for) with my R.E. LLC

[Evan Keturakat]

Hello BP! I am a real estate investor looking at a new opportunity and is looking for some advice..

The Deal: My mother has a rental home that has sat vacant for most of the last 10 years. The home is paid for but needs some serious updating and then some. I have been approaching her for years trying to either manage it for her, help with the needed repairs, etc.. but to no avail. Recently she has given consider to selling it to me and we have been figuring out the numbers. The home ARV is probably close to $250 and the tax assumption is there as well or higher (this was never appealed) I assume the home was worth something in the ballpark of $180 needing a kitchen/bathroom and lots of updating of plumbing and possibly some electrical too. I offered just below that and she decided it was worth much less and is giving me a deal if not a gift, I am shooting more toward a deal since I know gifting could hurt either of us with the current taxes and I also planned to buy under my LLC and keep separate from my personal belongings.

My questions are how should I go about the purchase and sale of this home? She is open to seller financing so it can be a note that I am not going to carry. Also note: I hoped to purchase that home into my LLC so am I still considered as being gifted from a family member and taxed likewise? This I know will hurt their tax base and she is retired.

I have begun some demo as I started to work out the details but am thinking I should stop until this is finalized.. Thoughts? Concerns? Suggestions? Any advice would be appreciated