Deceased owner. House needs a lot of work. Is this a deal?

[Carlo Makapugay]

Hi, all. A friend of mine mentioned to me that her neighbor passed away recently. She left behind her home, and as far as my friend can tell, the heirs haven't decided what to do with it. I'm VERY new to investing (been house hacking a duplex for a few years and am rather timid about jumping into a second property). The house is in a C-class neighborhood, 4 bed/2 bath, and looks decent and comparable in upkeep versus the other houses, other than a bad-looking roof. My friend has been inside and said it needs a lot of work--strong animal smells and decades of dust, cobwebs, junk, and clutter, and an unfinished basement that gets water.

Listening to the Real Estate podcast, this seems to fit the bill for an off-market, distressed property. What's more, I think the heirs are out of state.

It seems like this has the potential to be a deal. Can anyone offer advice? I don't even know where to start.

[Joel Florian]

@Carlo Makapugay

Look at Zillow or Redfin for prices of houses in the neighborhood. Find the average and multiply by 70%. Then get a competent contractor to give you a quote on repairs needed to make it livable. Subtract the cost from the 70% average cost of home in the neighborhood calculated above. Don't offer more than that. If the heirs will consider seller financing,pursue that, otherwise try to wholesale it. If the sellers want too much, walk away.