Sandwich deal with 2 properties on same parcel

2 Replies

Hello BP!

As I get further into my investing career I have been looking at other areas to get involved with. Most of my cash is tied up in a BRRRR project. So I have been studying up on lease options. I have found a motivated seller. My problem is it comes with 2 houses , never thought that be a problem. Do you see that as a problem for potential buyers on a lease option? How would I set the deal up ? Lease option the main house ( 2/1.5 1566 ) and rent out the back ( 2/2 1100 ) ? The mother in law is directly behind the main house with no other access point besides the main driveway. Opinions are greatly appreciated it.

Thanks !

@Ralph Dixon  Hi, Ralph.  Some additional details would help.  Are both houses currently leased?  Any work needed?  Asking price vs your market analysis?  Has the homeowner discussed the terms he's seeking?  All of this plays into how you approach this deal or if you should walk.

@Michael Carbonare

This is a complex one for me at least. The land sits on almost an acre. The area is Ybor heights Tampa. The property has single family home 2/2.2 1566 and behind that house was a garage that it looks like they added on 2/2.2 1200. They want 235k. This deal has kind of changed because we now know the zoning has changed and you can build a quad on the property. The 2 homes have there own folio. Front house can rent out for 1,200$ back 1,100$. Back home needs roof and cosmetic. It was suggested a knock down and build a quad in place of it. I know nothing about new construction but have called around and looking like 120 square foot to build. Example 4 plex 2/1 750 f square feet 1k rent would cost me around 360k but I can buy an older quad in the area for under 200k... so all in 595k operating income 5200$. I didn’t look at how much out of pocket this would be.