Please Help/.. Landlord is motivated to sell but just rented out property.

Hello community my name is anita and i’m currently working on my 1st deal. The homeowner is a new landlord and wants to sell his house he bought and totally remolded for his daughter. she’;s not ther and it was vacant about 1 week ago when he rented it out. He told me that he even asked the new tnants if they would want to buy in a lease option deal… He told me to contact him in a week with a buyer. he payed 16K, its worth 106k to 119 k and he wants 100k. how can i structure this deal to work for me? How can i present this to flip to someone who would be interested in a lease option property? or is it impossible because he’s just rented it out?

Does this property cash flow? Buy it and keep the renter in place. Buy it and flip it to another landlord. The new landlord won’t even have to go thru the trouble of finding a renter. Charge a premium for that.

If you want to buy it and kick the tenant out, you need to find out what the contract says. It may have eviction clauses. It may be month-to-month. And, as always, you’ll need to have it reviewed before competent legal counsel.


thanks dean. He’s currently recieving 750 rent… now do i offer 100k or nego down? He tole me that the 100k was his first offer and that it was final based on what he thought it was worth… but it’s only worth 106k with our county appraiser and 119k on I believe if i show him proof he will come down on the price. Would 85k be too low of an offer? What do you think… I would like to make at least 5k on this…

If you had the property, what would you do with it?

What is the current market rent for the property?

How did you arrive at a value of “166k to aa9k”?


I want to flip it to an investor… I recieved the 106k from our county apprasier website and 119 from $800 for market rent


It does not matter what the market rent is. This seller has put a tenant in place at $750 per month. As the buyer, you will have to honor his lease agreement. You will inherit this tenant and this rent.

Based upon the numbers you have given, the most I would be willing to pay to add this property to my rental portfolio is $61875. With 80% financing at 7% fixed for 30 years, my loan amount would be $41500. With this debt service, my cash flow would probably be around $100 per month.

Even if intend to flip the property. your buyer will inherit the lease and lease terms. Landlords don’t buy properties, they buy the cash flow that the property will generate. With these rental terms, I doubt a seasoned landlord will pay any more that $61875.

With a tenant in place, your exit strategies are severely limited. Paying $100K is the same as paying full price for a property that might appraise for $106K.

Most counties don’t have an appraiser. Are you really looking at the tax assessor’s website? If the property has a tax assessed value of $106K, the true market value may be even less than that.

For example, I am looking at some properties right now that have an assessed value of $116K. The properties are on the MLS (after several price reductions) for $89K - $104K and are not selling. Prices will have to drop to $75K before I will buy. Even if these proeprties sell for $75K, the tax assessor’s website will still show $116K as the assessor’s opinion of “market value”.

Don’t equate the tax assessor’s opinion of value with the property’s fair market price. Get current comps from a real estate agent.