A unique opportunity is in front of me, so I wanted to fetch some opinions from the BP community on what you might do if you were in my shoes:
I own a 3BR/1.5 BA property on the near-east side of Indianapolis. I have great tenants in the property now--have been there a year, and have another year to go on their lease, which expires August 2016. The tenants are a young couple who both work as bartenders--25 and 26 years old, and make decent money doing so ~$35,000 or so per person. They seem to enjoy the property very much, as it is close to their place of work.
Last time we spoke, they informed me that they were saving up enough money to purchase their first home together. They are to be married in a few days, and want to have a quality home to make their own. After listening to them speak, I thought that it may be possible to sell them my property. Now, it gets better...
On the same street and same block as mine, there have been several properties that have been retail flips that have sold for $125k - $140k. It is an area that doesn't support these comps consistently, but with the right finishes and rehab to the property, can obtain this kind of sales price. My question is this--should I try to sell the property to these tenants, and if so, what would be the best way to "flip" this property, already knowing who my buyer will be?
It is a flip/construction kind of move, and didn't know if anyone had done something like this before. All thoughts are welcome--thanks in advance!
Get a down payment and sell the property on a lease purchase contract. That way if they don't purchase the house you still keep the downpayment, and you basically get a higher quality tenant with some skin in the game to motivate them to purchase the house.
...and no need for rehab! Sell it As-Is
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