Newbie with a Lease Purchase Scenario
I'm wondering if the group here would see this as an opportunity, a loser, or a break-even headache.
Subject property is highly updated (electrical, central AC, etc.) 1928 build wood frame home in an undeniably up-and-coming neighborhood, currently retails in the $130k range.
Currently rented to mutual friend for $1100 month
Current owner is offering me a Lease Purchase agreement and is committed to structuring deal in such a way where there is no profit, but rather a break-even exit strategy whereby they do not have to deal with maintence, management, etc. Balanced owed on their mortgage is around $155k.
Terms have not been discussed beyond stating that ALL $ paid within the agreement would go toward purchase price (as opposed to whatever portion is typical).
My experience is limited: I've flipped a few houses and currently co-own and manage two rentals.
My financial: currently live in a condo (reo purchase) which holds %50 equity and have a private undocumented high interest loan on that. Mid-to-low credit score and very little personal income. Included this to show that I could view it simply as a way to purchase a personal residence where I could not "conventionally." I'm not in LOVE with the subject property but could be happy living there. But would rather it make sense more as investment first, with residing there being a secondary option.
Many thanks for any input.