Is this worth perusing??

Question

Hi, I have an interesting situation and I'd like some advise. Basically my grandparents owned a home in a very hot neighborhood. They both past away recently and now my parents and uncles want to sell the house.

A little backstory, my grandfather bought the house in the 80s for about 80k cash. In 2008 they took out some loans on the house for investment opportunities and well im sure you all know how that went. Well now there are a bunch of issues.

First off the house in its condition (not good) now can probably get about 1.5 - 1.8 if not more. But there is about 800,000 dollars worth of debt on the house which they are trying to settle before selling. Then there are issues with water bill,electrical bill, and probably other bills that haven't been paid in years besides for minimum. Last but not least the house is in my aunts mother in laws name. I dont know the reason but i assume it was so they wont lose it.

Now my question is, is there anyway I can take out any more equity loans in the house so I can renovate fully and sell for a much higher price, can probably pull 3.5 for a fully functional higher end house.

Is this even worth perusing or should I not touch this with a ten foot pole.

Thanks all, looking forward for your expertise

Ezra Shami · Answer

@Joe Villeneuve appreciate the input!

Joe Villeneuve · Answer

Not enough specific info ($###). Too many "about" dollar amounts. Would need specific costs for rehab, debt on property now (including utility bills), Present Value, Future Value (assuming rehab completed), cost to take control from "Aunt's Mother in Law" (count on this happening), carrying costs while the property is going through rehab (this will be very large and long due to extensive rehab needed), and other costs not mentioned that will add up.

Also you have to think about how any proceeds would be split, to who, how much to who, etc...and, who will be responsible for what from now until the property is sold. Do you like your family members? If you want to keep it that way, ...

Then, there's the specifics of the rehab. If you, or someone else (this needs to be the same person every day), won't have the time every day to "babysit" the rehab, if you don't have extensive experience in rehab, if you don't have a large cash savings that will be tapped during rehab process (at the least enough to cover the holding costs...and then some)...remember, there will be no income coming in during the very long rehab process, I would avoid any long term involvement that is based on a vision of gold. It ain't there...sorry.

Is this worth perusing??

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