I'm a big believer in trying to simplify things, and I love the idea of controlling property without owning it.
Just curious what everyone thinks of using a long term L/O with very small Option fee and no rent credits to control property, but then just straight renting the house for cash flow rather than doing a sandwich L/O.
I'm not sure if the spread would be too thin, but my thought was I could do a lease for the PITI amount and then cover expenses up to say $200. Owners get the tax benefits of having a rental with virtually zero management headaches, I can cash flow each month and if the property appreciates over the option period I can look to actually buy it. Almost a trial to see how the property performs.
Certainly not going to hit any home runs, but seems like this could be a pretty simple way to control property for cash flow with the potential of some appreciation, with very little risk. From what I can tell the worst case scenario is owner and I decide it's not working and terminate the L/O early.
Any thoughts or anything I'm missing would be really appreciated.
Sounds like a plan. Just make sure you have an escape clause with the actual owner before moving forward.
Love this idea and want to try it myself. Keep me posted @Lance H. if you end up doing this soon,
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