Trade low price for low lease?
I have a property in mind wherein the owner owes 37K from a 20 year old mortgage at 10%. He can no longer afford the payments but could do 500/month. The property is a little run down but would still sell around 100K and appraise for 120K. The property taxes are 1,600/yr .88 acres with an extra shop/garage.
He does run a small fabrication business out of the shop.
That said, would you find a deal attractive as a buyer to purchase the home for 37K (very low price for the area) in trade for leasing it back to him at 500.00 a month for the next 8-10 years?
Ok, so if I get it under contract I would want a cut too!
Would the fab shop bump this into a higher insurance bracket than what you would normally pay for a rental property?
I think the guy might qualify for a reverse mortgage but I thought this option might be attractive for a buy and hold investor. I know it doesn't work out when applying the 50% or 2% rules but it is a 100K+ property?????