This is a ~feeler~ question of sorts ... we have been renting our home for about 4 years now and have a great relationship with our landlord. He is an older guy, business savvy - former accountant, and not interested in being hassled with much, as far as I can tell. Wanting to retire peacefully. He has mentioned in conversation several times about a property that has been on the market for over a year that he has been trying to sell, but has not been able to do so ... I don't know numbers or details, but just wondered in my new "investor" frame of mind, if maybe he is distressed enough to want to work out an arrangement with us ... we can get much needed experience starting off, and we might be able to help him by offering to handle it as a rental. He stated that he didn't want to deal with another rental, and wants out of it ... but I can't help wondering if there is some sort of opportunity in there.
On the other hand, I don't want to do anything to sully our relationship with him currently ... and since we are not overly financially secure right now, it would take creativity to make it work. Something tells me not to do business with friends ... or the one you send you own rent check to!
Any thoughts on my thoughts are welcome! Hope this wasn't too confusing! Thank you!
Go for it. One of the important lessons I've learned over the years is that EVERYTHING is for sale at some price. Given you situation you might want to work on repairing credit issues and any shakiness.
Since you won't be paying cash for the place, the easiest deal for any seller is bank financing. If your landlord is making good money off the place you'll have to come with a deal sweet enough to remove that income from his portfolio. The issue with dealing with investors is that we don't usually end up on the short end of deals.
Would you potentially be interested in buying your current home? That might be an easier entry into ownership/investing than a property that has been sitting on the market for a year.
However it can't hurt to get the details on the property that is for sale.
The most likely scenario with the property that your landlord is trying to sell is that it is overpriced. If it is overpriced and tenant-occupied, then it really will be a tough sale. If it is also FSBO, then it would be next to impossible to sell.
most of us on here would have done it after his initial comment about selling.
Thank you for your comments! I think the issue with the home he has for sale is with the land division of the lot ... and possibly the price. Just today, he mentioned that he would probably be able to rent it quite easily, but didn't want the hassle (and I smilingly pointed out how hassle-free we have been for him! ha!). I was wondering if this was a chance for us to get some property management experience ...
@Jesse T. No - we are not interested in buying our current house ... while the home is lovely for us now ... the location isn't optimal. I wonder if the other property ticks those boxes ... ???
Not sure I can get husband on board with doing this with someone we know ... although I am less concerned with that ... because he could turn out to be a great mentor!
Free eBook from BiggerPockets!
Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!
- Actionable advice for getting started,
- Discover the 10 Most Lucrative Real Estate Niches,
- Learn how to get started with or without money,
- Explore Real-Life Strategies for Building Wealth,
- And a LOT more.
Sign up below to download the eBook for FREE today!
We hate spam just as much as you
You must be a BiggerPockets member to post on the forums
Join the world's largest, most open Real Estate Investing Community online, 100% free forever!