Potential nightmare or great deal?

[Joseph Delarosa]

Found a potential deal today Before I get chewed up and spit out, I'm just putting this out there, I'm a Cherry when it comes to investing. That's why I'm asking for lessons learned, and for thoughts that haven't come to my mind yet. Here it goes. Home- fixer upper. 3/2 1200sq ft Comps- range from $85k-$95k Sell price- $16,000 (could drop lower) Taxes owed-$3,100 Closing- $2,200 Home is livable. Contractor estimates $23K and 10 weeks for repairs to get the $95k asking Reason I haven't pulled the trigger. The previous owner of the home passed away and left it to her daughter who lives across the country. The daughters(new owner) uncle, cousin, and grandmother live in the home rent free and refuse to move. The family living in the home said that they are entitled to first option to buy the house, but aren't really sure they have the money to do it. So I guess my concern is how to go about the deal. Do I purchase and owner finance back to the family? Purchase, evict, flip? BRRRR? I'm open to all options, but the rental market here is definitely by far the most favorable. Homes don't sell quickly here. Besides the investment part what concerns should I consider in the legal realm? How could I go about this without the current tenants destroying the home? I'm learning how complex this can be. Thoughts, concerns, suggestions?? All are welcome. Let the growing pains begin

[Joseph Delarosa]

Oh man!!
You don't know how right you guys are. Thank you for your experience and insight.

I can afford to go to court, so I'm looking for a decent lawyer now for future ventures. I also decided to hire out for the title search instead of doing it myself, and it's definitely worth the money.

Turns out the house isn't yet paid for. The old company that owned the lien on the home closed down and never got paid. The current pay off is $14,500. Not including the $7,500 in liens from put on the home for plumbing, and the taxes from the last 3 years.

Y'all were spot on about the contractor as well. I had two more walk the property. One quoted me at $45,000 and the other at $52,000. These seemed way more accurate because I walked the property with them and it felt like I was walking through a fun house. The foundation needs to be leveled, the exterior redone, and the roof replaced. There is also a huge mold and termite problem. Electrical and plumbing were surprisingly good, and the kitchen had been updated within the past few years. The neighbors were not the best. Their dog had dug into the back yard and basically destroyed the AC unit and left the back yard in shambles. Although, I don't blame the dog.

I've decided to find my next investment.

I didn't come out of this with a great deal, but I did gain from this experience. Knowledge is worth more than gold. Unless you have a crap ton of gold, then you can be an idiot. Jk.. I have to thank you guys for helping me out. I'm So glad I decided to ask instead of just wing it.
Thank you all for your timely responses. I hope I can return the favor one day