Buying first house from current landlord?

[Aaron Snyder]

First ever post here on BP. Im 27 years old and have been renting on my own the past 2.5 years. My lease is up end of September and need to make a decision. Would love to purchase my current apartment from my landlord, but he never stated it was for sale. What is the best way to go about this? I plan on reaching out to him, but any tips on what to say, what not to say? Do I come forward with an offer first, or just plainly see if he's interested in selling? Any thing I can throw in there to sweeten up the deal, preferably something that's mutually beneficial? 

It's a one bedroom "apartment" that is actually just a really small standalone house. I was just was pre-approved for a loan, but have only around $8,000-$9,000 in cash. Pretty good neighborhood in town...property is in good shape, but definitely needs new windows and could probably use a kitchen & bathroom update. Also has an ongoing bug problem (ants, centipedes...I've managed to get it somewhat under control). Would it help my case to point out some of this work that needs to be done? Any advice would be greatly appreciated. Would ideally like to live here for another year max, fix it up a little, then rent it out.

[Scott Trench]

I'd encourage you to zoom out. Think about the portfolio you want to build in real estate, and the options available to you. 

For example, I bet you that if you did some analysis, you'd find that a duplex, or a home with an ADU, or a large home with multiple bedrooms, or a true fixer-upper elsewhere might present very comparable deals that will be accessible to you with your current cash position, plus a little bit. Suppose you decide to buy a duplex for a little bit more than this property will cost, that allows you to live nearly mortgage free. You just need $15K in cash.

Well, then you can ask your landlord to go month to month for 6 months, pay an extra few hundred dollars per month, save up, and buy a property that really makes sense as that long-term rental, instead of the property you happen to know. 

I like this a lot better than limiting your thinking to this property specifically. 

Now, I will also answer your question directly.

If your heart is set on buying this property, I'd simply ask the seller if he will let you know if he's ever interested in selling. 

He will either say he is, or he isn't. If he is, then I'd recommend that you hire an agent (you will probably have to pay this agent, but I think that will be money will spent for a first time home buyer). Your agent will be able to help you negotiate the sale price, make sure that you dot the is and cross the ts on this first purchase, etc. 

If you have trouble finding an agent - you can meet one by clicking on the "find an agent" button at the top of your screen.