I’ve got a somewhat complex situation and am looking for some financial advice. I’m inheriting a dilapidated home in San Diego that’s completely paid off. Realistically, the home is the only one I will ever own in this market but it needs a lot of work. Like a complete renovation/gut of $250-$350k in repairs type of work. Given all I’ve read from PFC posts about these types of hidden costs in owning a home, do you think it’s a wiser investment to cut my losses and sell it under-value or refinance/take out some kind of Home Equity Loan to make it a primary residence? Or, the third option could be that I put in basic/minimum repairs necessary to get it into a better shape to sell at market value.
In the current condition, the house is likely to sell at $250k based on estimates I’ve gotten and then I’d have to split that money 4-5 ways whereas if I fix it up, it stays in my name.
This could help me skirt traditional mortgage costs and allow me to get a property without having to put the 10-20% down payment on a wildly expensive and limited market. Of course, I’d be responsible for the interest on the refinancing/loan and any future hidden costs associated with it though.