Looking for creative solution

[Ron Czecholinski]

I have a friend with a large house that had it empty for two years, not able to sell or rent it (too big for most people). I was able to help by creating 3 suites and renting to 3 single peoples. It still doesn't quite cash flow but size and zoning would allow for 2 more suites, but would need renovation to create them.

The problems are the owner does not have the money for renovations and is upside down in the mortgage (worth 25% less than he bought it for). I thought about controlling it myself with a long term lease option but the upside down mortgage is a problem. I am also not sure if about the cash flow - the current value is around $300K and the loan is considerably higher. It needs around $50K for renovations for additional suites, and rent would be around $3K plus utilities.

The upside of this seems to be a good solution for this house. Any ideas that could help my friend get out from under this and me to make some money?

[Robert Adams]

Upside down in the property, not cash flowing, needs $50k in rennonvations.......why would you sign up for someone elses headache?

You can buy property that needs waaay less rehab, not upside down and that will create positive cashflow. Don't throw good money after bad money, move on to another deal. My 2 cents.