No. of Recommendations: 3
This is a cash only deal most likely because something is so wrong with it that it will not pass inspections such as septic that would be needed to obtain a mortgage, or it is not expected to appraise.

You don't have the funds, you don't have the income, would have to borrow even to buy the place. Buying a fixer upper without an emergency fund is foolish, IMO. How about prepaids such as insurance and taxes? That will be necessary even with a cash deal. In addition, how certain are you that you are not going to head back to take care of your parents? If they've needed help in the past the future is unlikely to be better. Been there, done that, have the T-shirt. There are boards here on TMF to help with that too. http://boards.fool.com/taking-care-of-parents-116503.aspx?mi...

If you are insistent on taking on this folly, see if the seller can take back a mortgage. Sounds like he has little to lose. Try for 100% funding, in fact. That keeps the majority of the risk on him in the event there is a fatal flaw with this property. I got private financing like this on an extreme fixer upper, an estate that had been vacant for 3 years. What sold it was going and talking to the son who inherited it and convincing him that I was capable of improving the property and paying him back. Perhaps an interest only 5 year note, which would allow you to get back into the working world, and allow you to spend what you had for materials to go with your sweat equity to improve the property.

Sorry I couldn't be more help. Good luck with exploring your options.

IP
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