Buying Grandma's House

[Tiffany Miller]

Hi there! My grandmother owns a duplex that she wants to get rid of. She is willing to sell it to me for $60k. Both units need a lot of work (sound structure, but extremely outdated) and I'm currently awaiting a contractor's estimate to have them rehabbed. Comps in the area are $200-$250k, but I would like to rent the units out. Can I purchase this home from her without using a realtor or going through a traditional mortgage? I know she would add me to the deed if necessary. She just wants to make sure she gets her $60k.

Thanks for any help with this!  I own my own home, but am a newbie to RE investing :-)

[Tiffany Miller]

@Steve K. Hey Steve, just wanted to follow-up on this post and let you know that your advice was gold! I ended up taking equity out of my home, as well as a hard money loan to purchase the home from my grandmother for $60k and then rehab. The rehab ended up totaling $100k (I was ready to give up several times and wondered if this was all worth it). Well, it was! I just got the appraisal back as a part of the refinance process and the house came in at $265k! My first go around was a huge learning experience and BiggerPockets was such a great resource! Thank you for your advice!