Don’t worry, it’s not a leaseback, at least not exactly! Decent Sub2 deal 4/2 SFH on 1 acre, seller’s current but wants out after he broke his back 5 years ago. He’s easygoing, and willing to walk for loan balance of $110k. FMV is $140k; was listed for $149k for 2 years, didn’t sell, expired. I found him when he called my ‘for rent’ ad for 1BR ground floor duplex apt.
This could work smoothly, slide him out of house and into apt. He has a 10 year old pitbull, which concerns me as a landlord in the city. He had Ch. 7 bankruptcy four years ago, credit is 660 now, no obvious issues. Later, if I had to evict, could things get ugly if he alleges that I profited from his situation? My experience in housing court is all they care about is whether rent was paid or not, but could I be opening a can of worms here? These days you just never know.
Update, he found another place to rent, I closed on his house yday sub2 with plenty of CYA docs, recorded the deed, I gotta make 2 payments now–July, August–to get mortgage current ($950 PITI), but it will be rented/leased within a week or two for $1300. Back end will be $40-50k, I’m happy.