Friend buying a bad property?

Question

I have this friend who's really excited about getting into real estate investing. Recently, she confirmed on buying a property, but the house will only be hers in 2 months time. I feel like I wanted to tell her it's a bad deal, after I went and check it out. It doesn't take a rocket scientist to see that the place needs a lot of work. The house was built in the 1800s, and the basement was terrible, and need lots of work. I'm not being -tive abt it, but I really don't think she can do this. She's gonna hurt a lot! I'm willing to help her do all the paintings and fixing up, but I'm not confident that the house is gonna worth anything. And also, the house is located in a bad neighbourhood. Should I tell her about all this, cos she seems very excited to do the project now? Or should I support her all the way to the end. We're not THAT close, and I almost feel it's not my place to say anything bad about the property.

The structure of the house is still solid, and has passed the inspection. The problem is the floor on the basement is not even, and the walls inside the house needs lots of work. She'll have to tear the whole thing down, cos it's got bumps and moles due to dampness. It's a 3 level house, with 3 bathrooms that each needs to be fixed together with new tubs and toilet bowls etc. I'm estimating about $40k at least to renovate the whole house, not including the painting, which we can do by ourselves.

Answer 1

Has this houses structure been inspected by anyone? Because if it fails that test it's not worth purchasing! Maybe mention that to her and it may be an easy way out for you! :)

You're a good friend for helping her out with all of this! Maybe you could sit down with her and seriously discuss the costs of fixing everything up. I know if I was her, I'd be really excited and not looking at the important details.

Good luck!

Answer 2

If it's a typical piece of old property, you don't have to say anything, the property will fall apart more as she tries to restore it.