I have been living and paying the mortgage (only $400/month) of a house owned by my mom for over 8 yrs. We have worked out an agreement to buy the hoiuse from her for $160k, this offer is exclusive to me and other than our agreement the house is not for sale. “As is” the house could sell for at least $205k, however if “fixed up and updated” I beleive that it could go up to $250k. Similar houses in the area have gone for $265k. Also in our agreement, I have her approval to do all the upgrades now without having to purchasing it first. So I’m looking to find an investor to finance the “upgrades” about $20-$25k then sell it without actually having to purchase it myself, figured it would save a lot of time and money. This way I would get anything over the $180-$185k break even point and she would get her $160k.
My problem is that due to illness I lost my job about 2 yrs ago, I perfecdtly fine now but financially I’m a mess… most likely looking at file bk. So I’m looking at this as as opportunity to help get me back on my feet.
Is this a good plan? What kind of terms would be “fair” for an investor? How should I work in the fact that I will be doing all the work?
Any advise that you could provide would greatly be appreciated.