Creative Deal. Opinions Wanted

[Mike McCord]

Hello,

I have an interesting opportunity, but I am having trouble determining how to creatively work this deal.

2 friends invested in a property and 1 wants to sell.  To complicate things, 1 of the friends got her parents to invest in the deal as well! (her parents would not want to be in the deal without her most likely).

I am an outsider who was invited to step in to try finding a creative solution.  Both parties trust me on a personal and professional level.  (I am also interested in gaining an equity stake in the property for both appreciation and cashflow.  I am willing to be the property manager, buy people out of their share, etc.  I own 5 other rental properties in Atlanta.)

Currently, the property is not performing well as a rental and my friends are not great at collecting rent and communicating.

Equity:

Friend A 49% (flexible and would be willing to cash out now or stay in for appreciation potential.  Has a ton of construction experience.)

Friend B 25% (does not want to be connected to Friend A in any regard.  Ideally, wants to cash out via selling, refinancing, etc.)

Friends B's Mom 13% (want cashflow/appreciation but probably does not want to be in a deal with Friend A without their daughter (Friend B))

Friend B's Dad 13% (want cashflow/appreciation but probably does not want to be in a deal with Friend A without their daughter (Friend B))

Property:

C-class 1/1 in an up and coming neighborhood in Atlanta (Pittsburgh)

Taxes: $740

Insurance: $850

Rent: $500.  Market rate for 1 bedroom seems to be around $750-800.  Adding a bedroom could bring it to $900-1000.

They bought it for $59k cash in 2018 and they now think it is worth $80-100k.

Ideally, I would love to find a way to gain a stake in the property (for little or no money up-front), become the property manager, boost the rental potential, and make everyone happy.

[Matt M.]

@Mike McCord

Why did it require 4 separate people to buy a $59k $500/month house? Not even worth it.