Duplex absentee owners with tenants. What strategies to pursue?
Of the little marketing I've done so far just about all the responses I've received have been from absentee landlords of properties with tenants who will either finance no more than 70-80% if at all and won't take as little as my cash offer.
But what else can I do with these sellers?
Financing with 20-30% down isn't bad but I couldn't repeat that without earning cash at this point so I'd rather find a way to flip these or find a way to get them financed more than 80%.
Option 1) lease options
I've read a bit about these but not with tenants already in place. Would I just take over the existing lease as my own sub lease under my master lease with the seller and replace tenants when their lease is up with tenant buyers to buy the option?
Alternatively I was thinking to avoid getting in the middle of that confusing situation just using
2) a straight option. ..
as these sellers can sit on these properties as they already have tenants. Offer them a substantial non-refundable option fee to show I’m serious, deductible from purchase price, then use the option period to either find a cash buyer to flip it to or find suitable financing for myself to hold it. Or
3) flex option, so seller can still sell to someone else and I don’t have to risk much option consideration but still be able to market the property.
Any comments , corrections or suggestions to my thinking so far?