Once we approve this, we sign an agreement with the tenant that clearly outlines the payment terms to avoid misunderstandings and, most importantly, to have legal backing if the situation escalates.We’ve had good experiences with tenants who are upfront and communicate their situation honestly, as it shows responsibility and willingness to pay.If you charge late fees, it’s important to set two clear payment windows—for example, the first payment between the 1st and 5th of the month, and the second between the 15th and 20th.

Buying an "Off Market" property with "Subject To" and "Wraps" & Selling "Lease / Option"When buying a property to cash flow, you need to know what your expenses are.

I also outline my primary exit (usually a flip with comps to back it up) and a backup exit (rental with DSCR numbers).

Hey everyone,I’m currently holding a duplex in Madison, WI that I’d like to move via Subject-To, and I’m looking for some advice from those of you who have done similar deals.Here’s the quick overview of the situation:3 bed / 1 bath lower | 2 bed / 1 bath upper~2,277 sq ft | Built in 1946I am currently ending the leases on both units so I can move it easierLoan: 30-year FHA @ 5.75% with about 352 months remainingCurrent balance around $389KMonthly PITI + MI is roughly $2,936Total expenses around $3,500/monthRents bring in $3,600/monthIt’s cash-flowing slightly and sitting in a stable rental area on Madison’s north side.Would love any suggestions on ways to go about this

Document EverythingUse contracts that outline exact materials, finishes, and change-order procedures.

It clearly states that application fees are nonrefundable and outlines the qualification requirements.

All the information I’ve seen about “subject to” is the benefits to the buyer.  

However, he doesn’t have the funds available right now to move forward with construction.I’m trying to help him come up with a plan and have outlined a few options for him to consider.

Melanie, great outline!

For example, has anyone here done a subject-to, wraparound mortgage, or seller-financing hybrid in a similar situation?