Hi everyone! I’m a new investor, and am trying to learn about lease option as much as I can. I have a scenario. Property is in AZ. It’s a Lease to Own, 5k down, 1600mnth. Great location.
Anyhow, I want to lease to own this property. But, I also want to re-lease to a tenant buyer for a higher rent. To make positive cash flow.
Do I have to disclose this to the seller that I’m releasing it? Pls help? How does this exactly work when it comes to the contract? What needs to be disclose and what does NOT need to be disclosed? Pls. help?
You’re going to have to sign the homeowners lease, so it depends on what his/her says. If it’s owned by an investor, chances are there will be a clause for no sub-letting. You didn’t give a lot of specifics so I’m assuming that you have room for positive cash flow??? Thats a pretty heavy downstroke ($5,000) so the positive cash flow better have a nice cushion. In terms of disclosure, all parties must disclose any known information regarding the property, etc… You’re really going to be at the mercy of the homeowner. Sandwich leases can be profitable but are somewhat complex in terms of closings, title, etc…
Good Luck!
John McNamara
Thanks for the reply this helps!