Can you believe this? A 4 Unit 4 Plex for Free... With Cash Flow.

I get many responses from my letters to absentee owners, one came from an owner of a 4 plex.
He tells me he owes 230K at 5% interest and the current value is around 140-150K
He said he had a mortgage payment of $687 and his renters were paying $2,200 in monthly rents. With Insurance & taxes there is still some serious dinero flow here.
These units sit in a lower income area in my town about 20 minutes away.
He told me he just wanted out of it because he lives in San Jose about 3-4 hrs away and just couldnt manage it properly and also because it was way underwater.
He explained he was thinking of doing a short sale.
I said I will buy it for the balance you owe, if you sell it to me with a lease option. I explained I would make all payments going forward plus the taxes, insurance, maintenance and repairs. At the end of the term I would transfer title into my name. And he would continue to reap the tax benefits.
He told me he was familiar with Lease Options because his friend had done that with his properties and he had indeed considered it.
He’s ready to do the deal, I want to check out he building a little closer and do some due diligence. I know there is some great cash flow here but 1 or 2 vacancies plus repairs and painting ect could take you in the red very fast.
Me managing apartments, dealing with low income tenants from hell is not on my list.
I may just flip my contract on these units, somebody would love to walk into these not having to qualify for a bank loan, and with the potential for a great cash flow.

I would hold on to that one. Just saying.


Eventually that $2200/mo goes into your pocket (after a fews years of rent increases and mortgage payoff).

After 30 years, what difference does it make what you paid for it? It’s paid off ‘then.’

be sure to have a lawyer read over the lease option contract before you commit to anything.