buying a package of properties on lease to own deal

[Greg W.]

Is this a good idea? I was going to do a land contract with sellers but their lawyer advised them against it since they have mortgages snd they csme back with lease to own.There are 7 properties and when they all are rented, it is very profitable. In the deal, I'm added to insurance and pay it and taxes. I put down 15% and will purchase within 12 months. All my payments will be subtracted from purchase price. Is this a good idea? Do I have legal control? Can I hire a managing company if I'm not the landlord officially? Can I file this on taxes?

Thanks,

Greg W

[Judah Hoover]

@Greg W.  Is it a good deal, only the numbers can dictate that. BUT there is alot to talk about here other than the numbers.

FIRST RULE of doing package deals... make sure every property stands on its own!!! if one or two of the properties seem to be "dogs" you will be amazed how much of your profits they take.

Yes you can file it on your taxes. (insert legal disclaimer about me not being a CPA so not qualified to give tax advice).

Yes you can hire a property manager, since you have the right to sublease the properties... I am assuming the owners know you are going to rent them out, not live in all 7 houses.

If you have the ability to buy them in 12 months, and they are this good of a deal, I say rock and roll!