Requesting Your Help With This One . . .
I have a tenant, found a property, and want to do the deal with 100% financing. Additionally, I'm pretty sure I have an investor. My quest is to put together a deal that is win-win-win.
The building is listed for $210K, but I could probably get it for around $175K. Property tax and insurance around $4K/yr. Necessary improvements $40K.
Tenant is good and willing to sign 5-7 year lease agreement.
Investor needs 1031 exchange, is interested, and I have worked with him before.
Here are my current thoughts: My investor buys the property for $175 and satisfies his 1031; I contract buy it back from him for $215 (15yr amort; 3%; 7yr balloon) which gives me the property and the fix up $ and him a sale and rates better than the bank. My tenant signs a 7 year lease at $36K/yr.
Am I missing something?? My last (and first!) deal was done just before I joined this site. I've been learning and looking and am ready again and am now seeking your advice before I jump. I would appreciate any advice on structuring the deal, dealing with the investor or tenant, and amounts.
Thanks!!!
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