Skip to content

Let's keep in touch

Subscribe to our newsletter for timely insights and actionable tips on your real estate journey.

By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions
Followed Discussions Followed Categories Followed People Followed Locations
Real Estate Deal Analysis & Advice
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

User Stats

1
Posts
0
Votes
Ryan Wilson
  • Property Manager
  • Pickens, SC
0
Votes |
1
Posts

Lease option buy-out, and unaccounted tenant

Ryan Wilson
  • Property Manager
  • Pickens, SC
Posted

I have, what seems to be, a great starter opportunity. This will be my first large deal, so I'm scared, to say the least.

Property info:

- Off-market

- 3/1

- ARV ~$90k

- Reno Est. = $30k

- Cash price $32k

- Old Singlewide on the additional acreage (salvageable, but not worth the effort)

Pros:

- livable (two current tenants)

- additional septic/utilities could be additional income (ADU)

Cons

- one previous tenant passed away in the home

Here's the kicker, at least to me, the current owner is under a lease option contract with the current tenant. The tenant is the one trying to sell the house, which is technically similar to a wholesale deal. They are contracted to purchase at $X, and they want to sell at $XX.

I've never heard of anyone doing this, so I'm curious if this is something that's legal?

To add to the complexity, there's a retired lady living in the house (a friend of the lady that died in the home), who isn't listed in the lease. This scares me a bit, in that she might could pose a little hiccup in getting her out. I have no reason to believe she'll be an issue, it just bothers me.

So, all that said, what's your advice?

Loading replies...