I am looking at buying a new villa in davenport, fl and they use a sale leaseback which I am not familiar with. biminibay. Any things I should look out for. My last few purchases have been standard purchases which in this orlando market have done well.
maci,
Sale-leaseback means the builder-seller wants you to buy the unit & lease it to him for use as a model or office. That reduces his marketing costs and gives him a deductible rent expense. You get a depreciable property and a 99.9%-certain rent payment. The only drawback is the wear on carpet and paint will be greater than on a standard rental. That’s very little to be concerned about, in my opinion. It’s a pretty safe investment.
Good luck,
Ray