I need BP! Possible deal at Regency in Heathrow FL Orlando Metro

[Molly S Ringer]

Basically I have an owner who needs to cash out for personal reasons.  They love the home, and would like to lease it back for a year.  They're looking to close asap but would prefer to lease back.

It's a 3/2 w pool in Regency Green at Heathrow.  I'm trying to figure out the best way to help these folks.  I don't have pockets nearly deep enough to do this on my own.

I feel out of my depth here and am hoping someone can give me some advice on how to best help this family.  Thanks in advance for any suggestions!

[Jon Holdman]

Run away. A situation like this almost always really amounts to a homeowner looking for someone to put the screws to. They're probably looking for someone to buy this house, then lease it back to them at about what their new owner's mortgage payment is. That's completely unrealistic. Rent must be quite a bit higher than the mortgage payment for a rental to be profitable. The 50% rule says rent needs to be DOUBLE the P&I payment to be break even. That include using a PM, so it the buyer is willing to self manage for free, the bar isn't as is. But rent still has to be considerably higher than PITI. And, if I was buying, I'd want a good return on my down payment, too.

If there's any desire for a repurchase after the sale/leaseback, absolutely run away.  That's not a purchase at all.  Its simply a loan.

The right answer is to help them sell their house and find another place to rent. Or, if they truly want to stay, they need to find a way to borrow more money against the house.  That will almost certainly result in a lower payment than the rent would be.