Posted by Bob (Md) on January 21, 2001 at 15:10:59:
I think I would get power of attorney so you can control the property, arrange for financing to cure the existing debt and provide funds for fixup. Then, I would contact a professional property management group in the area, have them manage the fixup, and then have them put in and manage a renter. The cash flow from the renter would pay to keep the place repaired, service the debt, and pay the mgt company. And maybe even put a few bucks in your pocket each month. That way, the property is kept viable while you’re waiting for things to sort themselves out. If your mom gets better, you can boot the renter and move her up there. If not, the property will be in good enough shape so that it can be sold.
Remember that all funds for fixup should be escrowed by the management company (or better your attorney) and released only when the work is complete AND INSPECTED.
My wife was a hospice nurse for years. My best advice would be to take care of your mother, and just get the property issues stabilized. Time has a way of sorting things out. When you try to make those kinds of decisions while under stress, it’s easy to make the wrong choice or get taken advantage of by unscrupulous opportunists.
I’ll try to make this brief:
Mom is ill for last two years, very private about her dealings. Till recently, she springs on me that she still has a house (vacant) up in the Clearlake Calif area. 3bdr 1ba 1100 sq ft. on 7 acres. IT is a great location just a couple miles from town and yet peaceful and quiet. She owes 20K. She wants to keep the property, she wants to move up there when she gets better… I told her to just focus on getting better. She thought of just letting someone live there rent free, if they fix it up. But I don’t think somebody would want to fix it up with the fear that once it’s fixed they might get booted.
Prop has been vacant for over two years. My mom lives here in So. Cal , prop is in No. Cal. Made some calls and had someone go look; Prop is overgrown big time. Roof leaks bad around front door frame. Caused frame and door to swell, carpet is bad around entrance. 100 yard dirt and gravel driveway is washing away. Siding on house need some minor repair. There is also a little cabin on the prop but it’s okay and a metal garage that is fine. The house, road and overgrowth needs work. This is not desperation cause I can make payments on it no prob. Talked to a R.E. agent she originally told us 160K might be a good price. After she did some homework she is thinking more like 140-145K. I don’t feel like spending a few weeks of my life up there trying to get my mom’s house put together but I will do what it takes. I guess I would need to hire a handyman / contractor to fix up the place and then I was thinking lease option it. OR do I lease option as is. Let someone live in it for free for 4 months while fixing it. THen have them start making payments and give them a nice credit toward purchase. Where do you get forms for lease options anyway?
I can’t really advertise it unless I’m going to be up there to put the deal together…Or maybe a Real Estate agent would do it for a fee.
My mom is stuck on the idea of letting someone live their rent free in exchange for fixing up the prop. I don’t think they would put much effort into a house they don’t own.
Anyway, We don’t want to sell the house through a realtor. ANY THOUGHTS please. ANY Good books on rehab and on estimating repair costs??
Sincerely,
Motivated but not in dire straights.
p.s. I’m glad I found this website, there seems to be alot of smart, solution oriented folks around this site.