owner in nursing home

[thisnewleaf]

I've been looking at a property down the street from me that is a mess--needs tons of work and is falling apart from lack of upkeep.  The owner has been in a nursing home for years and the sister who has the power of atty. says that if she sells while her sister is alive, all the money will go to the nursing home (I assume Medicade is paying now).  It's only worth about 20K as is but will be worth even less as the years pile up.  Is there a solution where the eventual heirs will keep the profit?  I would like to buy and rehab it. I live in San Antonio, Texas.

[taxlienadvisor]

sounds like you may want to invest in a different property will less baggage.

[tatertot]

I'd probably move on.

If you wan to buy and hold, you could purchase an option on the house.  Just be really certain that the sister has the legal authority to sell the house.

Also be aware that the owner in the nursing home might live for decades longer.

[thisnewleaf]

Thanks for the input.  I agree.  I'm off in pursuit of a better deal.   

[Bay Area Brian]

Thisnewleaf

Don't throw it away yet. Check out the possibility of a lease option where the option can be exercised upon the death of the owner.

In the meantime you get cash flow and keep the property in decent shape for resale, and the longer she lives hopefully value will continue up. And the sister doesn't have to bother with it much.

[gordo2417]

Bottom line is make the offer that works for you and see what they say. 

Nate-WI

[tatertot]

Keep in mind that the sister who thinks she is getting the house, might not actually get the house.

When the will is eventually read, the house might have been left to The Homeless Cat's Society.

[Benazre]

I think its good to take precautions while dealing with such a case. The sister has her own worries. Am sure you wouldn't want to lose a dime. The fact that you are inputting alot cash for this project is no joke.