A Potential Deal but...Property Manager
Hello BP,
So there is a home that I looked at today that is available for lease. It was shown to me by a property manager. It looked like a classic case of someone who accidentally turned into a landlord. The home needed some updating, DIDN'T have a dishwasher or a hook up (first time I saw that), etc. House has been unrented for a month at a decent price. Unusual for this market. I did a property report and all that came up for loan info was that it was a $0 Grant Deed in 2001 and the seller was Veterans Welfare Board. Sellers seem in their 80s at least so we may be talking family members here.
I want to see if the seller is open to selling on a lease purchase where I guarantee rents for 2-3 years and then buy them out at the current market value of the home. No realtor commission and no repairs on their part, and I get a home without having to immediately get a loan. Or I could simply sublease it and get a $300 spread and whatever option money I can collect from a tenant buyer.
I am hesitant to tell this to the property manager for obvious reasons, but I have no info on the owners unless I skip trace them. I can guarantee the prop manager that if the owner approves I will cut him a check for his "first month's rent and his 8% for this year". Looking at about $5K to have him on my team and it would be worth it if they said yes, and he would have a lot of influence on that decision I bet.
What would you do? Skip Trace or team up with prop manager?