Posted by Ken (ILL) on January 27, 2002 at 21:37:47:
Please trust me on this one… DON’T do any repairs on a house if you don’t have a clear title in your possesion!!
What you are doing is GIVING the repairs to someone. If they decide not to sell for any reason, like when the lease is due, they get all of your work for free!
The only solution to doing work on a house whose title you don’t own is to put a mortgage on the house for the price of the repairs. This is something that you and the seller need to work out prior to your doing angthing to the property.
The other thing I see here is lack of enough “headroom”. If comps are in the 70-75K range, there will need to be 10K in repair, (usually some extras creep in, too) and then you need to do any transfering fees… no money left for you!