All Forum Posts by: Bethany Shipman

Thanks, guys, appreciate the honest feedback that I’m probably overstepping here. I’ll probably delete the original but I do appreciate it.

I have an older single friend who went out of town to visit family for a few months, and while she was gone she had a brain tumor diagnosed and has been told she has maybe 2 years to live. She isn't planning to come home, though she has a house here with a mortgage.

I genuinely want to help her out while she is still alive, and of course I would have an interest in acquiring her house after she dies (no family to pass it on to that I'm aware of). I have experience in short and medium term rentals, and feel I could fix up her house (would need some basic things like paint) and make a medium term rental. 

Would it be rude, or too much, to ask her about assuming her mortgage and home title in exchange for monthly proceeds of any profits until she dies? The house is sitting vacant right now (with her furniture) and needs someone to take care of it at least, and I would be willing to make the time to do everything to upkeep it and pay the bills, and forward her any profits for now, in exchange for me keeping them later (after her death).

I suppose you may say it depends on how much equity she has in the house... and I'm not sure the exact numbers but it's probably somewhere around 20k on a house that's worth around 100k. May be able to make $600/ month

I'm just not sure if that would be taking advantage too much. I don't really have any cash to pay upfront for it. I would rather assume the current mortgage and terms (low interest rate!) if possible. But don't know if I'm helping her out enough to justify what I'm asking for. ALSO how to word it asking her in the first place!

@Joe Splitrock

@Joe Splitrock the last guy who looked at it said the ductwork already was running for two separate units (building was originally an old church converted to duplex!). So shouldn’t be too hard?

@Bruce Woodruff- good question— it is just within the existing blueprint, yes. Hadn’t got an official quote yet, just trying to be conservative (adding closet too, running a little electric in the two new walls… also in a super high vaulted ceiling room, so a little more material involved). 
appreciate the input!

I guess that’s the gamble… will it be enough to keep my bottom line under 80%. It’s somewhat difficult to tell because there aren’t many comps with detailed duplex information in the area. Thanks for pointing that out though

Hi! Husband and I are attempting our first BRRRR on a duplex. Offer is accepted, 55k, about 30K rehab and ARV 110. My question is, if my final loan will be for 80% max but we found a couple other things that could be added easily- namely, adding a bedroom to the 1bed/1bath side and reinstalling central air (and heat? currently has baseboard heating and window AC units), should we do those things even if it puts us over? Seems like we would recoup cost quickly on the bedroom for sure, as we can raise rent on that side… but not sure on the AC especially. It's interesting to know that the house previously had central HVAC, so ductwork is already in place (perhaps just needs cleaned?).

Another note is that this isn't a true BRRRR in that my lender doesn't cash-out refinance (we're doing a construction style loan). So I wouldn't be getting any capital back out immediately anyway. Plan is to do a cash out refinance in a year or so.

Would you add the extra bedroom (maybe $3-5k) and the central HVAC ($8k-12k) If they weren’t in the original budget? ALSO would you bother with forced air heating or do people like electric baseboard heating just fine?