Good Morning,
I need help/advice on how to craft this:
Seller Motivation: Very motivated to walk away free and clear, open to lease option. He currently owes property 1) 222,000 2) 222,000 and 3) 153,000. 2008 appraisal was $288,000
The Property: The property is currently demanding ~850 a unit and currently only has one vacancy. The area is very good for renters and seems to be no problem finding tenants.
Now I have not ordered an appraisal yet but was going to do that next week. I figure that the property is going to come in quite a bit lower maybe mid 190s to very low 200s. If the deal works I could be seeing ~500 a month (for all three) in cash flow this is after all cost associated with the properties.
My Plan:
–Do an individual lease option on each duplex.
–7-10 year option with $2000 back to seller a year
–Offer a little higher than fair market value which is likely not his asking/walk away price
Exit Strategy:
–Hold for two years and actively look for a buyer, possibly one of the tenants/ lease option.
–Cash out with $20,000 to $30,000 per duplex.
Please looking for any pointers that you might be able to help me with. I think this is a good deal but want to make sure that I do everything right when I craft this up. Like I said the seller is just looking to walk away free and clear and is open to anything.
Thanks in advance and your time.
Best
Darin
aka: bulainvestor