Grandpa passed away and left me one of his rental properties. 6bed 6bath 2,952 sqft on Zillow its estimate is $34000 and needs major repairs. Im not sure what would be the best option. its paid for so would it make sense to finance a rehab with some type of loan. to have the loan take the place of the would be mortgage to get it up and running. Or should I think about selling it I know it wont sell for much.
Ive checked all over the web, but everything is on how to buy or rehab a fixer upper that has a mortgage. if anyone knows a great forum post about this please send me a link
Grandpa passed away and left me one of his rental properties. 6bed 6bath 2,952 sqft on Zillow its estimate is $34000 and needs major repairs. Im not sure what would be the best option. its paid for so would it make sense to finance a rehab with some type of loan. to have the loan take the place of the would be mortgage to get it up and running. Or should I think about selling it I know it wont sell for much.
Ive checked all over the web, but everything is on how to buy or rehab a fixer upper that has a mortgage. if anyone knows a great forum post about this please send me a link
Typically when you've got a potential property that is all beat to hell you finance the renovation & aqusition with cash then refinance with a traditional lender later. This is called the BRRRR method.
B = Buy
R = Renovate
R = Rent
R = Refinance
R = Repeat
You've already got the B or acquisition covered. If you don't have the cash to finance the reno you could look it short term cash loans, your credit cards or more than likely the safest option of just selling it As-Is to someone who is more equipped to handle a project like this.
Real Estate Agent · Naples, FL · Member since 2016 · 298 posts · 268 votes
7y
Kameron Eden check locally. For example in my area we have home headquarters who will give out home improvement loans to both home owners and investors who want to fix up their properties, if they live within the county
@Kameron Eden welcome to BP, and you already have a property! There is a book called 'Accidental Landlord'. Written just for you!
Please give us some context-maybe we can help better?
What are your goals? What would you like to do? Do you have any land lording skills? Are you a handy person?
Is the building occupied? How many tenants, how many paying rent? What is the total income? Taxes paid?
Any idea of the major repairs needed? How come it has a Zillow valuation-is it listed for sale?
Give us some background-there is a small army here ready to help you spend some money and hopefully make a pile in the process. All the best!
Thanks I'll look the book up. I recently bought a side by side duplex live in 1 side and rent the other. My goals are to have investment properties. I'm so new to this right now, but I am trying to learn everything I can about investment properties and being a landlord. I'm currently learning from my father as things come up for repair. The house is currently empty and has 6 one bedroom apartments. Needs a new roof, floor in some spots are higher than others, gutters, and I have already replaced the exterior doors. I have installed floodlights and camera's. I was just curious to see if there is any extra information on the house and Zillow had it estimated at 34000. My goals for this house are to have cash flow and equity to buy other investments. Thank you for taking the time to respond to my post
Investor · Jasper GA · Member since 2015 · 1k+ posts · 1k+ votes
7y
Don't place too much Memphis on the Zillow value. Do you know if the property is zoned multi-family. I assume the property isn't the best part of town.
If you post where the property is located I'd bet someone ere would take a look at it and give you some ideas.
I'd take care of the roof and then work on getting one unit rehabbed and rented then repeat the process.
Investor · Shelton, WA · Member since 2017 · 6k+ posts · 6k+ votes
7y
@Kameron Eden the extra detail is helpful-you are a LL already! I'm sure you have already thought about if the area will support the 6 unit. How bad is crime, is there rental demand, and what are projected rents of a rehabbed property. Then; can it be rehabbed, and at what cost, and over what time period. How are the basics; structural, plumbing and electrical, mold etc; and then there is the roof. It will be a major job; but it likely won't fetch a price you want in it's current condition so you need to explore some alternatives. You have a great potential opportunity, or a gut wrenching money pit! Keep us posted!
Rental Property Investor · Lancaster, CA · Member since 2015 · 103 posts · 55 votes
7y
First things first you need to get the property in good shape so you can ask for the highest rent possible. Find a local contractor that is willing to give you an estimate on what it will take to get the property in good shape. Use your monthly rents to fix it up one unit at a time. By doing one at a time you'll still have the cash flow from the other 5 units to pay for the repairs. Once the property is fully rehabbed find a lender willing to refinance it for you and pull some cash out and look for another property and do the same. Welcome to being a landlord.