That means rental application, screening, background check, and a lease addendum outlining the new terms. 

I am looking at purchasing a property subject-to and looking for some advice and some answers on a couple of things.

The true value is often not what it will appraise for—it is what it will actually sell for on the open market and what a buyer is willing to pay.A lot of times, buyers purchasing properties with the intention of doing a BRRR use sales comps that are more than a quarter mile away from the subject property for refinance appraisal purposes.

If you end up selling it instead of renting, any gain from the sale could be subject to capital gains tax.

Make sure your lease clearly outlines which utilities are tenant responsibility and verify accounts are transferred before move-in.

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.

My budget is around $400K, and I’m looking for subject-to's or seller finance since I likely won’t qualify for traditional financing.I'm looking for a single-family property, am also open to multifamily, and my plan would be to rent out a room or buy somewhere with the potential to add an ADU/casita.

If your subject (0.5 acres) looks more like the lower end of the lot sizes, value it against those.Only give premium value to land if the market clearly rewards it (rural, equestrian, estate-style, or where people actually shop by acreage).If all comps are bigger (0.75–1.25 acres), we mentally adjust down a bit, not a percentage, just enough to keep our ARV conservative.

That means a portion of the gain could be excluded.However, any depreciation you’ve claimed since converting it to a rental (March 2023 to March 2026) will be subject to depreciation recapture when you sell.

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