Anybody here ever bought old farmhouse and fixed it up?

[Erik_in_Hoyt]

low ball them by $10k.
start making repairs and selling the antique doors & hardware.
tell the BIL he has 6 months to find the $$ for purchase price and all incurred expenses, including insurance, cost of repairs, etc... that will magically equal the $10k + a $500 structural survey fee to your bussy the contractor...
when he doesn't come up with the $$, you've upheld your end of the deal, and he STILL doesn't get to screw your wife out of your mom's old house & land.

 

[Kyle_in_Tex]

1st off Dargo, please let it stew for a few more days or weeks even. It is making for great drama and I love reading a bit of drama now and then.

If you buy the place for BIL, be sure to tell him of the carrying charge of 8% interest too. You could always finance it for him with 10-20% down and when he can't pay, repossess it. This would be way better for your pocketbook than for you to kick his rear and he sends you hospital bills. This would depend though on how much of a bleeding heart your wife has towards him.

Just remember, HWLLLB

On the whole, it sounds like too much of a hassle (the whole deal) unless you think the investment potential is really good.

I pick option #4, you buy my place down here and have a nice winter retreat.

 

[EddieWalker]

Dargo,

This is what I consider a "LOSE - LOSE" situation. Buying it and fixing it to rent it out, or flip it for a profit seems unlikely. Renters will destroy what you do to the place and you'll be dumping money into it as long as you are renting it. If you are lucky, you'll make a profit when you sell it, but who knows when property values are going up and who will be able to afford a it? Then there is the BIL who wants it. If the MIL wants him to have it, ler her buy it and sell it to him. If she doesn't have the money, lend it to her is such a manner that you are removed from any responsibility of the house, but that she owes you money for the loan. There is now way, for any reason that I would buy the house just to sell it to the BIL. You have nothing to gain from it, you'll be out the cash until he buys it back from you, and then you are responsible for the house until he buys it. He might even be the type to go after you as the owner of the house who sells him a defective house. If it wasn't family, would you even consider any of this? It sounds like emotions to me, you're letting the family connection influence your better judgement.

Good luck,
Eddie

 

[riptides]

I'd low ball the price because of the joists.

I'd leave all family issues and matters out of it. Treat it like it never happened.

If you want the place buy it. No strings attached.

In the future, if the BIL happens to be an interested party in renting/leasing or sale, go with current market prices.

If the MIL wanted him to have it, she can always write something in her will or estate plans.

 

[SimS]

Dargo;

I agree with Eddie. Walk away. It sounds like your MIL knows the score with her son and I don't see why you would want to obligate yourself to a future transaction with him. I would sit down with your wife and MIL and discuss your plan to walk away. Explain that if the BIL can't get the money now why should you be on the hook until he does? And given his actions to date what makes it a done deal that he would be straightforward with you? BTW best of luck for your MIL.

SimS

 

[MarkV]

Dargo that is a tough situation. Normally I would be with the group that says walk away. The problem here is your MIL if very ill, I'm sorry, this was her childhood home and she likes the idea of it staying in the family if you BIL bought it. If you bought it it is in the family but would become a rental and that isn't the same. Seniors get very sentimental about the family farm when they know their days are coming to an end.

Owner financing can be a good investment strategy when done properly. I've done it with a 7 year ballon payment or they get their own financing by then so you don't tie up your money forever.

Good luck with whatever you do. I think your justified however you decide to proceed.

MarkV

 

[Dargo]

Before I head out for the day to some meetings, I thought I'd give the (likely) only boring update. Right now I've decided....nothing.

I've gone right back up to sitting on my lovely perch on that fence. What is it about family they say; you can't pick them and it's illegal to kill them. I just told their attorney to send me all the paperwork and I'd look over it. I've always been one of those annoying people who insist on reading everything and everything before I sign it. It's been a while since I've purchased property with a home on it. If I recall correctly, even when there isn't any financing involved, there is still a lot of signing. Needless to say, I'm not signing anything involved with this deal before I not only read it all but think about it. Thanks for the suggestions!!!

 

[cowboy357]

Since its family I would see if the MIL would consider just transferring the title over with a quit claim deed I beleive its called for 1 dollar . You take that to the county clerk transfer the title to Your name. & no real paper work involved there or taxes as long as the personall property taxes are up to date .

Then come to an agreed cash price for the property that both of You are in agreement of . Takes the hassle out of it as long as both partys are happy . I Beleive I,d just ignore the BIL & do what You want with the property. I,m not sure if it works that way everywhere but I,ve done it several times . Bob

 

[Danno1]

I'm not all that up on abbreviations (even with 3 daughters, cell phone text stuff)

Well, for sure I'm not a 13 yr old girl! And I don't text either. But that was one of the first ones I learned.


Sorry for the confusion.

.

 

[MarkV]

Since its family I would see if the MIL would consider just transferring the title over with a quit claim deed I beleive its called for 1 dollar .

MIL doesn't own the property, her parents did at one time and it is now for sale by different owners.

MarkV