Potential Deal Analysis Help

[JP P.]

Need help analyzing a property (a property my family owns, older cousin) ---a little background on my family: I wouldn't have any issues with pissing off and upsetting them because they already call me the odd child and the "where is Waldo" of the bunch. They ALL understand I'M ABOUT MY BUSINESS and this particular cousin is all about his business as well. So hurting each others feeling won't be an issue.  House is already paid for. The City has it assessed at 30k, neighborhood probably only warrants 20k-24k. I think my cousin wants sell it for 20k but I will find that out when we have a heart to heart discussion.But I want to have a solid game plan going in to discussing.

Price: 20K                                                                                                                                                                                                                                    Est Rent: 550;  If fully renovated I probably could get 600-640                                                                                                                                   Needs everything to be update.In addition, because of the neighborhood the house needs to be hardened. 

Without getting very detailed I figure I would easily have to put in 30k to rehab/update and to harden the house. I DONT WANT TO PAY 20k AT ALL for the house. Where I think I need help is to come up with a win-win situation to make this transfer beneficial.Please BP look at my options and thought process below and comment/critic.

Option 1

• Maybe do a JV partnership where I put in the rehab cost and he owns (both names are on Title/Deed) the house and we split profits 75-25. I'm responsible for the maintenance and repairs.
• Get an appraisal on the house.
  • If/when we sell we split the profit 50/50 after his initial appraisal value at the agreement.

• Show him my success home where I have renovated and rented out and my own home renovation
• Update him through the renovation process and all deadlines. Keep him in the loop of EVERY stage of the process till rented and collecting money.
• Show all invoices of the work being completed.

Option2

• Owner finance with me paying for an appraisal and closing cost.
• For a flat amount of 13k-14k;15 year loan to balloon in 5, 6, or 7 years
  • Maybe less on the sale price if the appraisal comes back lower.

Option3

• Take time to get contractors bids on work to be completed.Get current value appraisal. Get 3 real estate agents opinions on price mark.
• Take information to cousin and make a cash offer based information.

Thanks!!!