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Updated over 3 years ago, 06/03/2021

User Stats

6
Posts
1
Votes
Brian Winters
1
Votes |
6
Posts

Inherited Property Rehab

Brian Winters
Posted

Hey All,

I recently found out that I am potentially set to inherit what would be an abandoned house in the Edgewood area of Dayton. I say potentially as it is a long story with a bit of drama, but basically it was my grandfather’s home which we thought for years had been passed to someone else. But to make a long story short, the remaining family in line for it wants nothing to do with it. Since they know that my brother and I are looking to get into real estate, they have said that we can have the property if we want. 

A little bit about myself, I currently own a duplex in Cincinnati that I have been house-hacking for almost five years. I want to get deeper into real estate as that has always been my dream, just never pulled the trigger on any other deals for a nunber of reasons. I have put in offers that have fallen apart, etc...but as of now I have limited experience, especially one what I am thinking would be an extensive rehab.

Now back to the house and situation itself. From what I can see, there are about 20k of back taxes that need to be paid if my brother and I were to take over the house. The house is a one story 2/1 luckily. I say luckily, as it is my understanding those shouldn’t be too costly to rehab compared to other property types. However, at this point I would assume it has probably sat for about 20 years so it would likely need everything (electric, plumbing, etc..). I am hoping for no foundation issues and am planning on driving up to take a look at the house this week or weekend at the latest. From what I can see on google maps, the street itself actually doesn’t look too terrible and the city has been cutting the grass at the property (which they have been charging for). I have family in Dayton, but I don’t have a wealth of knowledge as outside of going to family member’s houses here and there, I don’t know much in depth about the city and its specific neighborhoods.

 My brother and I have proposed going 50/50 on everything and rehabbing; then renting the place out. I currently have about 30k saved up personally. My brother has a few thousand that he was saving for his own home for my understanding as we have spoke about in the months before we even learned of this opportunity. However, I don’t fully know his financial situation and what he is expecting to come out of pocket just yet, so I wont speak to that. I was hoping to come back to him once I get more specifics as he lives in the Atlanta area currently, and Im am the closest again being in Cincinnati.

Questions for anyone with experience in Dayton area rehabs, estate/property transfers, and back taxes:
1) What would you consider a ballpark figure for complete rehab on a 2/1 in Dayton?

2) Am I taking for granted that we would be able to set up some sort of payment plan for the taxes?

3) Around how much should we expect in transfer/title fees to get the house from our relative's name to our LLC (yet to be formed as my brother and I are looking to create a joint one specific to this house)?

4) Do you know anything about the Edgewood neighborhood? Please keep in mind that I am not intimidated by rough neighborhoods at all as long as it is not a complete warzone and/or can’t cashflow.

5) With the back taxes and rehab costs combined, is this even worth undertaking or should we just move on? 

6) Would you have any contractor recommendations for the area?

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