Buy Low and keep the owners Mother as a tenant

[Sunil Kapoor]

Hi Fellow BP-ers,

I’m looking to purchase an investment property for cash flow. I estimate that the market rents on the unit are around 1000-1050/month and the price is around 125K. When digging deeper, I found out that the owner has his Mother renting the unit for around $650/month. He’s like her to stay, but understands that the market rents are much higher.

I’m wondering your thoughts on how to structure a deal to keep her in the unit at a slightly higher rent, but push for a discount on the asking price.

Any ideas of an innovative strategy that could be a win-win?

Regards,