I have found several tired landlords here in San Diego that want to sell their properties. They own them outright with no mortgage. I have considered making a seller finance offer but don’t have the liquid capital for all 4 properties. So I’m considering a master lease option. My question is: all units are at fair market value. How can I cash flow and what sort of offer should I make so that I can control the property and make some cash flow as well?
Hey! I’m a local agent here in San Diego and have seen Master Lease Options (MLOs) used smartly—especially when capital is tight.
If the units are already at fair market rent, your cash flow will depend on how creatively you structure the deal. Here’s a simplified approach:
• Negotiate slightly below-market rent (since you’re handling management and risk).
• Add value—furnished mid-term rentals (like for traveling nurses) can boost returns.
• Include rent credits and a locked-in purchase price over 3–5 years.
• Option fee can be small, applied toward the purchase.
• Make sure you get subleasing rights so you can actually cash flow.
Pitch it as a win for the seller: steady income, no headaches, and a future sale lined up. Let me know if you want help structuring the offer—I’d be happy to walk you through it.