Rental Nightmare with no extra money to fix
I am fairly new to real estate investing. Have 2 rentals that I lived in and rented after moving out of. Currently, the process of selling 1 to invest in my first multi-unit. My brother did the same and moved out of state and did not hire a management company. His tenant had great feedback besides paying rent late. That’s not the problem though.
I am also a Real Estate Agent and going to put my brother's SFH on the market. Knowing there were issues with the property, I went on a walk-thru last night. First, the issue with the property is there has been 3 water floods in the basement which is fixable. But as soon as stepped in the home, house was trashed! The tenants dogs never had their paws wiped off from getting walked, carpet is ruined, and baseboards were chewed up. The whole house will need to get re-painted, new carpets and minor fixes throughout the home. This is on top of the the basement getting fixed.
My brother has no extra money to fix everything. Yes, he will not give back the security deposit but that will only cover so much. I will not be able to list it for top dollar like he wants. Not sure if he can even break even at this point..... Real Estate is too stressful for him and wants to get it off his hands ASAP!
Any advice?
Most Popular Reply
Work out an owner finance deal with him after getting the tenants out. Get it at an awesome price, renovate it and then rent/cashout or sell. Carpet and trim-out doesn't seem like a huge deal, not sure about the basement flooding. Should be easy profit for you.