Financing Ideas for family property

[Paul C.]

Hi, kind of long story here, but I am looking for ideas on how to approach and structure purchasing a property from my Dad and his siblings as my grandmother recently passed away and they are talking about selling the property so I'm hoping to make this a win-win for all of us. Would love to do some sort of weird BRRRR so that I dont have much money in the deal.

My situation: own 2 other investment properties that are cash flowing nicely and plan on purchasing a "forever" home(meaning it may not be a great investment, but hopefully it has everything we need) in the next month or two with my wife. On the forever home we are going to use a conventional loan with very little money down as we do not have a ton of savings, but have pretty good W2 jobs and good credit scores. Whatever my financing suggestions are on this property I will need my wife to sign off and she is less risk averse than I so keep that in mind 😊

Family situation: My grandmother recently passed away and the siblings are looking to sell the house relatively soon. We all have good relationships and I believe they will work with me as long as this can be a win-win. I do not think any of them desperately need a large check(like they would get from a traditional sale), but I would want to pay them for the house within a year or earlier if possible. Family has stated they would not mind renovations and would prefer for it to stay in the family although I am slightly nervous on how this would actually play out as my grandparents built this house in the 60's and we have tons of great memories there.

House situation: Built in the 60's, 4 bedroom 2 bath with full basement with bonus room gigantic laundry/utility room and office, 2 car garage, workshop area, and it is definitely livable and had a couple of additions over the years, but I have a couple of concerns here. The main concern for me is electrical work as I believe it is mostly original and my Grandad was a tinkerer so over the years instead of calling electricians he would try to fix things himself so there are wires hanging all over the basement. We have been told by people installing appliances and electricians in the past they did not really want to do many changes as the system is so funky it is a fire hazard, doubt it is up to code, and once they started working on one thing they may open up a huge can of worms. Smaller concern is the plumbing/piping as I believe it originally have galvanized pipes(I heard those are no longer legal), but those were replaced(not sure when), but I think they are okay. My concern prior to renting out the house would be that I would need to replace all of the electrical as one repair issue with a tenant could cause a major problem and I could see myself renovating the kitchen and bathrooms to get full ARV, but that could wait a few years as they are in decent shape.

Does anyone have any good ideas I could present to my family members that would entice them to do such a deal? It would need to be with little to no money down at first, but I could potentially make monthly payments once it is rented and possibly get another loan to make a balloon payment down the line? Should I use hard money(I might be a little too risk averse) or conventional or some other option? I don't have exact numbers, but my first guesses are below and would need ideas on how to get those as well whether it be inspection, appraisal, and quotes on repair work. Would also love if someone could help me running the numbers to determine a good purchase price as I would like to be at 75% ltv so I can pull all my money back out of the deal.

ARV with just electrical repairs: 340,000

ARV with full update: 390,000 - 430,000

Rent with just electrical repairs: 1700
Rent with full update: 2200

Repair Estimates with no contractor help:

Electrical - 10,000

Kitchen - 12,000

2 bathrooms - 12,000

Paint/Take 1 wall out - 12,000

Misc/overages - 16,000

Total - 60,0000

Sorry for how long the post is, but let me know if you need additional info to help answer my questions.