[Duchesse]

Originally Posted by mjensater

Here is a quick synopses of my situation:

My grandmother wants to sell her family farm so she can pass her daughters the inheritance while she is alive. I am the only grandson and have offered to buy the farm. She has offered the farm to me a s substantially discounted price. The farm (16 acres) includes a home, barn, a few shops etc.

The numbers:
The most current appraisal is $78,000.
She has offered it to me for $30,000.
I have about $8,000 in savings I could use as a down-payment.

The details:
I do not live in the same state.
I do not have a home, I rent.
I do not plan to move into the home for at least 5 years, if ever.
I have never had a mortgage.
I have the intent to sell letter.
I could rent the property and home, I have renter(s) willing at this time.
The home is not in very good condition.

Here is what I need help with:

Do I try and get a home mortgage for the the property?
Do I need to live in it?
Can I disregard/condemn the home since its value is so low?
or
Do I get an investment property loan?
Do I get a vacation loan?
Do I get a primary mortgage? Or can I if I'm not living it it?

To be honest I really have no idea where to start and would appreciate some good advice/ideas on my situation. I'm not savvy at investment so I need the basics first!

I'm willing to return help in anyway possible!
Thanks in advance!

Depending on how much of your cash you use for the downpayment and your credit score you can probably qualify for a mortgage. Since it's not your primary residence it can be bought as a vacation home or an investment property if you rent it out.

But before you do anything think long and hard about renting out of state.
I'm no Donald Trump or Leona Helmsley but I have done some real estate and renting in another state is a NO NO especially for a novice.

Who will you call upon to manage and maintain this property while you reside out of state? What will you do if they don't pay the rent and ignore your phone calls and letters?

You said you plan on selling it later. Family members might resent you getting it so cheap and selling it for a profit.

The numbers $$ sound right but the circumstances could be wrong.