If I have no desire to be a landlord at this time, what are some exit strategy options If I get a good deal on a house but it’s occupied by a good tenant on an active lease? I can think of the following:
Wholesale to a landlord
Have the seller to get their tenant to agree to vacate amicably before I buy
That’s about all I can think of. I’ve been getting a ton of landlords with good tenants calling me lately…I don’t want a prepackaged deal with a tenant who I haven’t screened, I want a vacant house lol. I assume I would have to honor the existing lease agreement if I otherwise buy the house. So are there other ways for me to make a buck on these deals other than wholesaling them to landlords?
Example, got a free & clear semi detached row house in very good condition that’s tenant occ. ARV around $160k, he doesn’t know what he’ll take for it but he will seller finance. Tenant’s paying $1200. I know exactly how I’d structure this if it was vacant…buy with seller financing with as little down as possible, then sell it on a wrap or lease purchase. But the tenant being in there just throws off all my exit strategies here. What do I do with this, what exit strategies am I missing?
Just wholesale the property to a landlord. Landlords love turn key properties with stable tenants already in place. It’s instant cash flow from the day of close for them. The longer the tenant has been in the property the more attractive the deal becomes to landlords.
SOME landlords like those properties. You may also want to approach the tenant about converting to some version of a tenant-buyer. Perhaps working out a way to have them buy the property with you staying in place as the middle-man or finding an investor who would like that.