Looking for options and advice

[Chalie Krautkramer]

Hello Bigger Pockets family!

I am new here to the forums. Let me explain my story. My father passed away a few months ago unexpectedly at the age of 52. He left us with his home with a mortgage of 156k on a house worth 190k. I know I could sell it but I would rather turn it into a family investment. There's three of us girls he left behind(me and my two older sisters) and if we sell it and split it we wouldn't make much profit after. Also nobody in my family is very financially intelligent, and I'm almost certain that if we did go that route my sisters part of the money would be gone within a few months. I've met with a realtor and was informed the house would rent for 1100-1200 a month. The problem is the mortgage payment is 1600 a month. I've thought about possibly putting it into my name and refinancing and then renting, however I am a fulltime nanny with a weekend job as well. I get paid under the table for my nanny job so it looks like I only have income for my weekend job. With that being said it looks like I have a terrible income to debt ratio. also a credit score of about 620. So I probably wouldn't get approved for refinancing. The next option I thought of was buying a rental property with money I have saved up, renting that property and using its cash flow to cover the rest of my dads mortgage. I have about 50k to work with. I also heard about delayed financing in the podcast a couple weeks ago. However I'm not sure how it works or if I would need a good debt to income ratio and credit score. Also if I do purchase a home with that money I would have no backup. Do y'all have any suggestions on what I should do? I'm very young and have no experience in REI but I know its what I want to do. I have also considered switching careers to become a real estate agent, so I could have access to the MLS and it would help with the income debt ratio because I wouldn't be paid under the table anymore. what are yalls thoughts? thank you!

[Patti Robertson]

I'm so sorry for your loss, but the numbers just don't make sense on this one. You aren't considering all the expenses. You can't keep this afloat from what you have shared. Sell it. 

Here's some motherly advice - start reporting your income. If you ever want to get ahead in life your will have to act like a grown up adult and pay taxes like everyone else. Your employer is breaking the law, and you are too. Fix that and you will probably qualify to purchase a bonified rental that will cash flow.