Please help DG Family

Thanks Gary! I was afraid this was the case. I honestly would rather wait it out and buy it and flip once the contract expires. I will find out when that may be. Stay tuned:)

Here's a thought:
If the tenant's rent gives you positive cash flow with your numbers, why not buy the property, enjoy the extra revenue and sell when/if they decide to move? (While it might be possible to sell to the tenants, I've asked people who have been long term renters why they didn't buy their place and they've all pretty much said that they didn't want the responsibilities of home ownership. You and I know that just means they've been paying the landlord's mortgage and/or more so who cares if they don't leave? There's a few good possibilities down the road.)
Also, what's stopping you from buying it and selling it to a landlord on your buyer's list? I would think a property with such a long term tenant might be a good selling point for this.
Finally, one downfall in waiting is that another investor might beat you to the punch if it's a good deal.

Just something to think about...

Andy Sager
DG's AndyS

Lenee,

If it cashflows well with a strong tenant in place, it should be EASIER to wholesale to a buy/hold/rent investor. SAME TENANT FOR 30 YEARS?! That sounds like a buy/hold/rent investor's dream property. You might want to try wholesaling it to a buy/hold/rent investor before you evict the tenant and fix and flip, since most cash buyers are looking for what you already have: a property with a strong tenant in place.

This is assuming it cashflows nicely with the current lease. If it doesn't cashflow then your fix and flip strategy might be a better way to go.

Just my 2 cents

Dave

That was the first thing I asked the tenant (why didnt they buy) and they said that they didnt think they could afford and didnt want to deal with the ownership aspect. I have been a landlord before and it wasnt a good experience, so I will only use this method as a last resort. The only issue wuth selling to another landlord would be the fact of showing the property. I hate to disturb people...and I know this is something that I must get over. This house is not listed, nor were the owners actively considering selling until I contacted them so I dont think there is much competition. I do, however where you're going with that. Thanks for the advice

I am not wanting to be a landlord at all. This is the only reason I would not rent myself (bad previous experience). You are right....buy/hold/rent investor's dream property. However, with that said I feel awkward bringing people to look at the house while its still rented. I've had to deal with this a few times, but usually deal with vacant properties. Another issue would be the fact that the renters are on a fixed budget and still paying $200-250 less than fmv rental rate for the area. They cannot afford a down payment. I keep running into dead ends, may have to let this one walk

Why wouldn't you want to purchase it with 40% equity after repairs?

How much longer is the lease for? You can bring the rent back to FMV at expiration.

If you do not want to be a landlord, bring in a property manager if the numbers are right.

Lenee, think of it this way, by showing the property to other investors, you're helping the tenant to stay in the rental home and the landlord get a price he wants. Also, you're making sure that the investor is getting a good deal.

As a landlord, you probably know that after each tenant moves out, you have to spend money to touch up and clean up the place, in addition to the advertising and vacancy cost (plus fee for the prop mgmt co. or a realtor to put a new tenant in). Not to mention that as a landlord you probably don't need to do much, since everything has worked out well for 30 years! So even if the tenant is paying less than FMV, the number might still work out.

If you really can't get over the property showing part, at least give the lead to another investor and make $500 or so. Or pay someone else to show the property if that makes you feel better. You'll most likely encounter more tenant-occupied properties in the future, might not be a bad idea to start right now.

It seems to me (since you dont want to be a landlord) just to get the contract and assign it to a landlord investor as mentioned above. Quick, clean and simple

You know, the more I think about it...I realize that may be my best bet. Although, I am still wondering if I would be correct in thinking that if I were to buy, that I would have to keep with the current lease and give appropriate timing to vacate???

Thanks for the advice! More than likely, I will go that route.

Wow Lenee, sounds like you have a good one there. The buy and hold would be sweet if you were in it for $25k and the rent left you with a couple hundred bucks of positive cash flow, but I think the assign to another investor who is buying and holding now would be the ideal for you since you don't want to be a landlord. Someone knowing that they can pay $25k for the house and repairs and have positive cash flow day 1, wow, thats sweet for them! Good luck and let us know how it works out.

Will do. I have not had time to do alot of posting...Guess I was just a little puzzled with this one

A business partner and I purchased a fixer with a long-term tenant (with a month-to-month lease). Initially, we intended to flip that property with seller financing to the tenant; however, the tenant didn't want to own the property.

Next, we opted to work with a Realtor to sell the property, went through several of them, and still haven't found the right one. Several dropped the ball on the listing (and grumbled about the price of property [ie it's not expensive enough]). Plus, one of them offered to do less work in exchange for a 10% commission. So we've held it for a few months for cash-flow while we revised our marketing strategy.

Then I got involved with the RBBP. Now, we're tweaking our marketing strategy.

So understand what you're going through.