Primary Residence Sub 2??
I am currently renting an apt in a duplex which is my primary residence and the owners are looking to sell. From talking to them their motivation seems to not want to landlord anymore. I had mentioned that I may be interested in buying.
Asking price/ 249,000
Comps/ One just sold down the street for 299,000
Monthly income/ My apt is renting for 700 and the other one can rent between 1000-1200.
I want to approach them with an offer but was trying to decide how to structure the deal. Is is Ok to do a sub 2 or maybe just a lease option? The area is appreciating a lot and is a very nice neigbohood.
Has anyone done this before? Any advice will be greatly appreciated.
Althought the property value is very high, the rents may not be suffiucient enough to cover a mortgage. Do you have the cash to put into it each month to make the monthly payments?
If you take it sub-2, you would not have to worry about coming up with the 20% down that many banks require on an investment property.
I personally prefer sub-2 to L/O because YOU get the deed. See if they will be willing to let you take over their payments and take the deed. You will then be resonsible for all maintenece/problems, taxes, P&I, insurance and they will be out of it completely. If you do a L/O, they will still be resonsible for taxes, insurance, large maintenence items (furnaces, water heaters maybe, A/C, roof, etc) give them BOTH options. don't just give them 1 option. They may forget they have a3rd option, not to sell to you. LOL
Good luck.
Sam
Third option is very true..lol. Thanks for the advice.
What about equity in the house? Do I negotiate a price now and purchase a year later? Just trying to see what would be an incentive for the owners to sell that way.