Potential first property purchase

[JPV85]

Hey everyone, so it's been a little over a month since I first read Millionaire Fastlane and then the newest Unscripted shortly thereafter. Needless to say mind blown, perception changed forever I could go on... Having serious trouble finding and landing on a market/idea to just dive headfirst into and doing my fair share of action faking and researching my research in circles and never actually doing anything. That's besides the point.. Back to the reason for this post.

So a family member of mine owns a two family house that has been in the family for two generations. Upstairs tenant is moving out end of this month. Downstairs tenant is my uncle. Both units are 2 bed 1 bath. As far as I know they only charge $850 for rent. In the location the house is they could easily be charging double.

We haven't sat down and talked numbers yet but it was eluded to that I would get the family discount, whatever that means. I know they still owe about 70k on the mortgage and they at least want to get that paid off. the house is estimated to be work 500k and then some. Not sure how much they'd ask for the house if I wanted to buy but it sounded like I could get it for potentially hundreds of thousands under the estimated price.

The tough part is, they want to keep the house in the family so it's not something I could purchase cheap and turn around a flip and feel good about doing. Also the trouble of my uncle living in one of the units. He's lived there my entire life and I don't anticipate him moving any time soon which isn't a problem but it's an awkward situation with the rent he pays vs the rent I could be charging.

Is this a potential great purchase or a headache and parasitic debt monster in disguise? I currently rent an apartment and own no properties. I realize this isn't exactly a the fast lane to wealth but it's an interesting opportunity that I wanted to get some extra input on whether or not it would be worth my time and money?

 

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[MJ DeMarco]

Is this a potential great purchase or a headache and parasitic debt monster in disguise? I currently rent an apartment and own no properties. I realize this isn't exactly a the fast lane to wealth but it's an interesting opportunity that I wanted to get some extra input on whether or not it would be worth my time and money?

I think this is more monster than opportunity for only one reason: The uncle.

If you can get the property at below-market value it is irrelevant if you can't evict a tenant, or raise his rates. So you will also have below-market income. Meanwhile, the cost to repair an AC unit is $10,000 when it was $3000 15 years ago.

IMO, you're better off investing in a public REIT and grabbing 6% yearly, completly passive, plus appreciation.

I express my indifference toward RE ownership here...

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I sure miss all of them as I am an eternal optimist that clings to hope that they would all have been better off if they didn't up and quit. theChosen1 was a good contributor and I thought the young lad had great potential, but was a little emotional at times. BLsomething bodybuilder dude was...

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[Uly Sambrano]

Hey everyone, so it's been a little over a month since I first read Millionaire Fastlane and then the newest Unscripted shortly thereafter. Needless to say mind blown, perception changed forever I could go on... Having serious trouble finding and landing on a market/idea to just dive headfirst into and doing my fair share of action faking and researching my research in circles and never actually doing anything. That's besides the point.. Back to the reason for this post.

So a family member of mine owns a two family house that has been in the family for two generations. Upstairs tenant is moving out end of this month. Downstairs tenant is my uncle. Both units are 2 bed 1 bath. As far as I know they only charge $850 for rent. In the location the house is they could easily be charging double.

We haven't sat down and talked numbers yet but it was eluded to that I would get the family discount, whatever that means. I know they still owe about 70k on the mortgage and they at least want to get that paid off. the house is estimated to be work 500k and then some. Not sure how much they'd ask for the house if I wanted to buy but it sounded like I could get it for potentially hundreds of thousands under the estimated price.

The tough part is, they want to keep the house in the family so it's not something I could purchase cheap and turn around a flip and feel good about doing. Also the trouble of my uncle living in one of the units. He's lived there my entire life and I don't anticipate him moving any time soon which isn't a problem but it's an awkward situation with the rent he pays vs the rent I could be charging.

Is this a potential great purchase or a headache and parasitic debt monster in disguise? I currently rent an apartment and own no properties. I realize this isn't exactly a the fast lane to wealth but it's an interesting opportunity that I wanted to get some extra input on whether or not it would be worth my time and money?

If you're wanting to raise the rent on your uncle you probably should look for a different deal.

I see that causing family members to be unhappy with you not just your uncle, especially if you're getting a deal on it.

For me I would take it, raise the tent in the next tenant that moves in upstairs cuz I imagine uncle isn't moving.

Then use the equity on something else to build a business, But it also all depends on your finances cuz you gotta make payments on that equity you barrow plus whatever else you got plus potential upkeep on the house you buy.