Purchasing my grandma's house...need advice

[Nate Pummel]

I'm new to real estate investing and I'm looking to get my first deal.  With the Denver market being so expensive I've been looking to invest in another state, possibly turnkey.  Well, I might have found a doable deal here in Denver...my grand parents house.  A couple of years ago my grandpa passed away and my grandma moved into a nursing home.  Well, there has been talk that the family is looking to sell the property.  It's in Lakewood (Sheridan and Florida for those familiar).  It's a 1950's and it's listed as a 3/1 even though I think it has 4 beds and 2 bathrooms.  It hasn't been updated in probably 30 years and it has about 50 years worth of junk built up in it.  My grandma owns it out right.  My uncle is also renting it for way under market value.  I could really use some help in how to approach this and evaluate it.  I want to make this a win/win for both parties and I don't want to offend my dad and his siblings by offering a number (purchase price) that they wont fully understand.  I've also thought about not getting involved from the purchase standpoint due to the family ties but thought of maybe wholesaling or helping someone out there find a great lead.  My grandma (85) will need the funds in about two years to continue to pay for expenses so I'm open to some sort of creative financing that will help maximize her financial position.  Any thoughts or advice is very much appreciated.

[Matt M.]

Talk to your Dad about it because you do NOT want this messing with the family. It just isn't worth it.  With that being said, if the home is there to support your Grandmother, I would keep it as a rental until she passes. That way she'll have some income off of it. While she could get a lump sum, she will be drawing that down. She may live another 10 years.

If you buy it and make some money, then your family could get upset(jealous) depending on their financial situation. I personally would partner up with the estate. They provide the home, you provide the fixup and put it on the market fully rehabbed. Establish a base price and split the profits after expenses. You are going to need help putting the deal together when the time comes. I've gone down this road with clients who want to try out flipping, and it has worked quite well.