Selling my Renal Cashflow

[Shrey Hey]

Anyone know if I can sell the right to my rental cashflow. Say I am earning $1000 a month from a tenant on a 1 year lease. Can I sell the cashflow to anyone for a bit less than $12000?

[Patti Robertson]

This is such an interesting question!  I've never heard it asked, but basically you are trying to apply a concept that note sellers use, of selling part of the revenue period. The problem I see is that renters are not nearly as vested as mortgage holders. I know I would have little faith in a tenant screened and selected by someone else. The discount you would have to take would be massive for anyone to be willing to accept the risk. 

A few years ago, I had an owner of a free and clear house call me to sell, and he didn't like my offer. We structured a deal instead where I loaned him $36k for 3 years at 0%. He repaid me ( or was supposed to), $1000/month and I got rental rights for the loan period  we rented the house for $1100/month. He was supposed to make 36 monthly payments of $1000 to repay the loan.  He never made the first payment and we foreclosed. It ended up being a great deal for me!