Rehabbing & House Flipping
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback
Updated almost 5 years ago, 02/14/2020
Rental property from family
Hello! This may sound confusing, I’ll word it as best as I can. I would like advice, also the advice on if this is a good decision or not.
My grandparents are selling their last rental property. It is the house I grew up in, it has been empty for a while. They have been slowly fixing it up to get it to the point that they can sell their last asset for a nice piece of change. They are both retired so this is really it. My grandfather is tired of putting money in and they are getting very close to selling it.
The house is in an absolute great area to own a home. A great school district etc. I would like to buy it because I know no matter what I will always be able to find a tenant if the current tenant doesn’t want to stay forever. My problem
Is, is that I do not want to get it for cheap as my grandparents could use the money. But, at the same time I want to know if it would be a good idea to buy for a rental. For a while I've always wanted to buy beaters, fix up, rent. (BRRRR). So basically I'm wondering if this would be a good idea as it is already in good shape if it would be worth it.
Also, I’ve been working hard to save money in my account so that I can have enough to cover 15-20% costs if I were to do flips with a lender. So this question is, if I use the money in my account as a down payment for this great rental, what should I do to be able to move forward and invest in real estate without having to wait a while?
1. Is this a good idea to buy a rental property at a high cost, knowing it would always rent?
2. If I spend the money in my account to obtain this rental property, what would my next steps be to take so that I can get into more deals at a more rapid speed?
The house is $230k. I would already have a tenant who will pay $1700-1800.
With about $15-20k of work I know the house could get up to $285-305k.
My parents own our residential property on the same street and it just appraised for $310k.
So I guess there is some room to build equity.
THANK YOU ALL!