Option & suggestions for offer on a distressed MFR please!

[Barbara Chan]

We are mulling options for an offer for a distressed MFR as we are new to ideas beyond conventional. Seller has a listing agent and I inadvertently mentioned I was looking at a property to an agent in my area and now we have a buying agent involved.

The property was built mid century, all original. Current owner bought early 2000s, has been collecting rent, deferred maintenance, owes $28K in taxes, and may be other bills. Apparently a section 8 tenant damaged his unit, made it uninhabitable & faced eviction, but sister is working on repairs so he can stay. Roof has been repaired, will eventually need replacing. There are several broken windows. Net income is mid $40s.

One option is bringing the property current on taxes and other outstanding bills, paying all costs associated with transferring title to a land trust with a friend as trustee (we being the beneficiaries) giving something to both brokers and giving sellers walking money. Without assuming the loan, we would take over paying the loan still in their name. We would appreciate feedback and advice!