Creative Financing to purchase house I am renting
Hello all!
I currently reside in SE Portland in a 1500 SQ 5 bedroom, 2 bath house (tiny house for six people, a married couple lives here as well). There are a lot of people jammed into this house and that basically keeps my rent very low. I believe, however, my landlords have no idea how much this house could be renting for. Inner SE neighborhood, access to the new Orange line and Springwater corridor, it's a fantastic spot.
The landlords are VERY hands off and at times we worry that they might sell it. I'd love to get it from them before hand because it could be turning more than $3,000 a month easy. I would house hack as well.
The downside is its valued around 500K right now so I am not sure I want to try and give them that much for it. I am new to REI so I would want to get something like 1% return? What are some ways I could acquire this property? Do you think they would take $300K even if its valued that high? It's hard to gauge what they are thinking or what they know.
Most Popular Reply
A few things to consider:
1. The 1% rule is basically impossible to achieve in Portland
2. If the house is actually valued at $500k why would the owners want to sell it for $300k?
3. You seem to think that the owners may not know the value of the house. Are you hoping to take advantage of that? Are the owners older folks? Imagine if your parents owned a property that was worth $500k and someone convinced them to sell it for $300k, how would that make you feel?
As I said, just some things to consider.