Novice real estate investor here. I currently own a two unit property - I live in one unit, the other is rented. I have learned of an opportunity of a single family residence which will be listed for sale in the near future. The owners are currently in debt and looking to sell ASAP and rent in the same community I live in. I am wondering IF it is possible to try and strike a deal where I can assume their mortgage(if it makes sense) and they rent my apartment(potentially at a reduced rate), essentially trading places. They get out from under their mortgage and I gain another property in which I would likely hold for 2-3 years and then sell. I don't know all the particulars yet, but assuming asking price for the SFH will be around 100K. The house needs repairs to roof, but otherwise has generally been well cared for.
Does anyone have any insight or experience with this type of transaction? Potential risks/benefits? Challenges to making this deal? Again, I am a novice investor so any input would be appreciated! Thanks!
I personally don't see much wrong with this deal. As long as your "reduced" rate still leaves you in the black then why not. I am just worried about the sellers becoming your tenants. You said they are in debt so if you never met them and were renting out your unit, would they be considered qualified candidates for your rental?
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