My sister is selling her home soon. It is an older home in a nice area but it is in need for cosmetic updates (walls, carpet, flooring, kitchen &bath) in the interior. She plans to sell as is. The home is probably worth $220 as is. But, with the cosmetic updates, it could possibly be $240+ because of the highly desirable location.
I am considering approaching her to buy her home. If I can get proper financing, I want to do either:
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Purchase the home outright thru normal closing, remodel(hopefully with limited expenses) and then resell it a few months later.
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Purchase the home and rent it for 1-2 years then resell it. The value would increase at least 5-10% each year.
Can you explain in detail the best approach, if at all and why ? I am leaning towards #1 but need some guidance on constructing the contract, any contigency clauses and financing, etc…
Please help,
Josie :-\