I found a home that is FSBO. Comps show it is worth about $400K sellers will accept $330k, needs about $10k in repairs as it was a prior rental and some remodeling was in progress but the owner passed away. It is vacant and they are absentee owners and they do not want the house. Here is the kicker, the heirs want to do a lease with option to buy as they can't sell the house until it goes through probate. They also want 10% down for the option.
Questions; Is this a reasonable down payment request? Can they put it into a lease with option to buy if it is probate? Is it possible the probate could be dragged out if a relative or other party lays claim to part of the estate?
The plan was to tie up the proerty for 12-24 months(negotiable), finish repairs and rent for market rate(which would cover mtg paymnets) and create a small cash flow until the home comes out of probate. Than either purchase outright at the agreed upon price or sell to another investor. Ho wwould you write the offer?
I am a former realtor but a newbie with the investment side. Any help will be appreciated.
