My Renter Wants to Buy It...

[Pat Burch]

Hey Everyone,

I own 5 investment properties. One house was paid off last year. What a great feeling, $900 a month income with no mortgage, pure joy. Well, the renter has inherited a large sum of money and wants to buy the house from me. He has verbally agreed to pay market price ($94k) as soon as the inheritance funds clear. I bought the house for $62k in 1999.

I spoke with my banker today, he said I should have no problem financing 2-3 additional properties, that I would want to replace the $900 per month loss. My thought is to find 2 properties with a $500+ positive cash flow, in the $85k price range times 20% down = $34k, leaving $60k in savings.

I have never sold a house before. Is there any advice on FSBO in my position? What do you think of my plan?