Unique situation I've never read about. I have an opportunity to pick up a new SFR at about $100K below new market value.
I would take the property, and would rent it back to who I'm getting it from for fair market rent for the area. It would be about $2K/month in rent. Zero mortgage would be owed on the property. They would be using this as the model home for the development and would have all the upgrades. Best cabinets, floors, countertops, molding, landscaping, etc.. Any costs of turning it back into a regular home at the end of the term would be the responsibility of the builder renting it from me.
What are the implications of the lease that this would have? Many of the normal things would apply, but I'm sure there are issues here that I'm not considering. I currently have 3 rentals, so I have what I consider a solid normal lease, and the builder would certainly pass a background/credit check. Plus, I know him really well. But that just means I need an even stronger lease.
Would this be worth engaging an attorney to help?