I asked about selling our home sub2 several weeks ago. We found a house we want to buy and have had an investor offer to buy our current home sub2. But, we have perfect credit and are very scared to sign the deed over when we are still responsible according to the lender.
We have had a couple approach us about leasing our home with the intention of buying it in a year. (We know there is no guarantee that they will purchase it.) The payment is high, IMO, for a rental because our payment is high. There is very little markup there.
Anyway, is a sub2 safer than leasing it ourselves or vice versa? Is there anything I should know about leasing to them? They told us upfront that they are working on repairing their credit and asked for a lease/purchase. But, from what I have learned here, that is not a good idea in Texas.
Regardless of the option I choose, is dwelling fire insurance the right policy? I was surprised at the expense compared to a homeowner’s policy!
Personally I’d be worried about the sub2 investor making the payments. You could try and stay on top of checking that it’s paid each month, but what do you do if it isn’t? At least as a landlord you have control of who the tenant is and making sure your payment is made. As far as insurance, I would look into a landlord policy.
I tend to agree, giving up the deed in a sub2 deal takes you out of the driver’s seat. In the L/O if the tenant breaks the lease you simply evict them. In the end the investor is probably just going to LO your house anyway.