Good Deal? [NJ]

[Ryan Parker]

Hey y'all, I just wanted to get some insight on this situation.

As a pervious post mentioned my grandfather isn't doing very well and has ended up in a VA home. My aunt has a PoA and has considered selling me his house. Now I'm not sure of her asking price, but she's willing to work with me.

I'm leaning towards doing a seller financing setup to pay my aunt while I do renovations on the home. The house is from the 30s and needs some major work, but it's fully paid off. Here's a hypothetical deal structure:

Purchase price: 130k (Interest-only @3.05% for 10 years)

Renovation Cost: ~115k (highly estimating here, still waiting to get bids) w/ HELOC

Cash out Refi: ~250K mortgage (paying off aunt and heloc)

ARV: ~350-390k (based on similar homes sold in the last 180 days)

Taxes: ~2.5% of home value

Insurance: ~1400/year

I'm looking to get rents around $2600-$2800

House is a 3bd 1.5 ba

The house is located in North Jersey. Any insight is greatly appreciated!