Marketing · Redwood City, CA · Member since 2015 · 34 posts · 7 votes
I am currently renting one side of a duplex here in the San Francisco Bay Area. I'm basically on the flip side of the exact situation I want to be in. I'd be very happy owning the duplex and renting out the other side. My landlord also has a garage that her son lives in. Curious if anyone on BP has ever bought the house that they were renting and what that process was like. Do you think it's something I could approach her with at some point? She is an older woman, around 60, who is retired. But I could tell online that she bought the house back in 2011 for $650k. So even though I'm sure she's comfortable in the current situation, she would stand to make a nice chunk of change on the appreciation and could probably find a small condo for half that amount. Any and all thoughts/comments are appreciated!
@Ben Rice Anyone is willing to sell at the right price. You should definitely run some numbers and see what your top purchase price is that will still get you the cash flow situation you want.
In terms of approaching your landlord, I would just be candid and tell her that if she were open to selling you'd love a crack at it.
@Ben Rice Anyone is willing to sell at the right price. You should definitely run some numbers and see what your top purchase price is that will still get you the cash flow situation you want.
In terms of approaching your landlord, I would just be candid and tell her that if she were open to selling you'd love a crack at it.
I rented then bought a house in Chattanooga, TN back in 2003. Your job is harder due to the need to displace your landlord, unless you are willing to leave her in place as a renter for a set period of time. anything is negotiable! Make sure the numbers work and compare with with other good options. There is more danger of making an emotional decision due to your love for this properly. don't rush and stick to your criteria for finding a deal. That said it can work Good luck!
Like the others have said, run your numbers first so you know your starting and bottom line. But the initial conversation is easy, you just tell your landlady that you love the place and if she ever wanted to sell, you hope she'd give you the opportunity to make her an offer. Just be ready with your numbers, you might be surprised when she asks you right there on the spot. You never know people's circumstances and situation.
How much would she be willing sell? What is rent range, tax, ins ??? Is she willing to do seller fin? At what %? Any rehab involved ... At what cost? Will the tenant pay utilities? Does it have separate meters? Many questions
@Ben Rice I would also add that speaking your landlord's language wouldn't hurt. Pick their brains a bit and find out how they came to purchase this property. Possibly asking them what their rate of return is on this property at the moment. Maybe they inherited it or maybe they're a high level investor. Either way, it wouldn't hurt to know more about why or how they came to own the property.
Also, you can talk to them about a 1031 exchange if they decide to sell and how they can roll the capital gains into another rental property. Like others have said, be ready to have a real conversation with her so she can tell you're serious.