seller wants 1 year rent back
Hi. I have a seller than says he will sell for a great price if the buyer can guarantee a 1 year rent back lease for a great price. Is this something any investors would be interested in? Of course it would depend on price I'm sure.
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- Rental Property Investor
- Brandon, SD
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As an investor, I would be excited to have a built-in tenant. I'd like to know the seller's motivation for this. A tax benefit as he has depreciated the place out? If he wants a great price on the rent, I'd want some concession on the sale price. As an agent, I might suggest talking about a contract for deed rather than a sale and leaseback. This would give more protection to the buyer if he trashes the place and then sets up monthly payments for the seller and seems cleaner. I'm not sure what the laws allow in California around CFD though.