Hello everyone-I have a bit of a delima.I found a property that is in Merritt Island,Fl.It is a brand new condo.I spoke to the owner the other day about renting it out.He is asking $1600 per mth.I told him that I was looking for a long term lease of at least two years and that if I were to keep my payments up would he consider selling after two years.He said that yes he would.Now,I have also spoke to a person the other day who is from out of town about this property.He is very interested in it.But I mensioned to him that the price was $1600 per mth.What I am wondering is,what can I do to structure this deal,and what contracts will I need.I would kindly appriciate any input out there.
I am not an expert. I just wanted to say that you need to make sure the owner will let you sublet the condo. I know my LO contracts will say this is not allowed.
I am not a big fan of the middle man thing. You are completely responsible for the property and you don’t even own it. If your tenant wrecks the place and bails, you lose out. At least if you owned the property, you have options.
Also, if the owner does not pay the bills, get liens, or loses the property, now what? You are now responsible for the life of that tenant so get ready for a big lawsuit. Think it does not happen, think again.
I am sure some real experts will chime in here though. Just thought I would get the conversation rolling with some things to consider. In a perfect world you would just charge your tenant more than your lease, collect, and be done, but the world is far from perfect.
Also, what if you have just one month vacancy, what will that do to your profit because your monthly payment is inflated since you are not the owner.
Save yourself a ton of grief and run away from this “deal”. It is no fun being the landlord of a place you do not even own. I can’t stand being the landlord of the places I do own.
Dan732-You are miss informed,I have no plans whatsoever to be a landlord.I want to buy and then get someone to rent with option to buy.Thanks just the same.
What do you think a landlord is? If you got a renter your a landlord whether it is one unit or 500. Also what are you planning on paying for this condo? Also look into the Home Oweners Association fees and taxes. They can easily eat whatever profit you were planning on. Condos are the last to appreciate and the fastest to depreciate in a down market.