Have an opportunity, need help with strategy

[Jennifer Anderson]

Hello friends,

Like I said, I have an opportunity. It could be beneficial or a total nightmare. I made a similar post with great feedback. So great it made me realize I should rethink the entire strategy.

I was introduced to a couple, both in semi poor health. They have a limited income and do not want a loan where they need to make any payments. They own a home outright worth approximately 400k

They want cash to pursue some alternative medical treatments. The wife wants to live in the home until she passes. Her health is poor but not terminal. That is the sellers bottom line-100k cash and to stay until she dies.

They don't want a reverse or a HELOC because they can't afford the payments and don't want to do the required paperwork. They want cash and they want it asap.

What would you do?

This is such a valuable resource and thank you everyone who is willing to share your knowledge and experience.

Thank you

[Marcy Ramich]

Quote from @Chris Davidson:

@Jennifer Anderson you have moral things to consider, but you could offer a price that is good to them with a free rent back then turn around do a cash out refi and lever up your money. Treat the house like your own little bank. Downside if they live 20 years puts you in a bind and gets real messy. Also does the family come after you for buying the house way below market value. 

Not saying these are the numbers but say you buy it for 100k, turn around and refi for 200k you just pocketed 100k take 50k of that for another investment, and hold the remaining 50k to use as payments on the 200k, this will probably float you a couple years. Work the numbers and see what makes the most sense.

Essentially you would be buying a non performing asset with built in equity and it would only make sense if you could float the cost and/or pull the equity out and put it to work IMO.

Best of luck!

I'm new at this, but offering  far below market doesn't seem ethical at all to me in this case. There must be a better win win here.