How do I make this deal happen...?
I am new to fix and flipping, although have been investing in buy and hold properties.
Recently, ran into someone who is a landlord wanting to sell his place due to the job he has landed, and decided to accept in a foreign country. He will be wrapping up everything and will be moving out of US in next couple of months. He is one of those accidental investors that we always read about.
Here are the details about the property...
ARV - $260,000- 265,000
Possible deal - $200,000 - $210,000 (Nothing in writing yet)
Repair - $25,000, 30,000. (The place has been extensively used by tenants for last 10 yrs. I am going a little conservative by going a little higher on this amount)
Here is the issue with the property. The tenant's lease is another 6 months. The owner would like to see this deal take place before he leaves the country, as he said he doesn't want to have any pending business once he is gone. The tenant is pretty upset that the owner is selling, and scared the the "mean investor" will be kicking him out.
For me, I plan to purchase the property with hard money. If I inherit the tenant, I will have to potentially wait for 6 months before I can start any major repair. There is no way I can be doing major repairs with the family living there.
Other than making a nice offer to the tenant (perhaps 1 month's rent), and hope he takes it, what other ways I have go make this deal happen? If this is the route I take, how do I make it happen? Do I do a 3 way agreement with the tenant, seller, and myself for him to vacate the premises and make the offer to purchase contingent upon the tenant leaving? Has anyone dealt with this?
The larger question here is, that I am bound to end up running into situations like these from time to time. So if an easy resolution is not found here, I am wondering whether to spend any marketing dollars on tenant occupied places. This just was dropped in my lap and I didn't spend a single dime on finding this deal, but I would hate to spend hundreds of dollars and end up in a situation like this.