lease option multi-family?

[Account Closed]

is it the same thing as a SFR? i read that you cant really do lease options with multi families, is that true?

any tricks to getting multi-families when they have little equity?

[Josh Caldwell]

Gary,

you can lease option pretty much anything that has an income stream.  Generally the terminology is a little differat when it comes to multi-unit residential properties. 

On a multi-unit, we generally call it a master lease option.  Its pretty much the same thing. the big differance is that you are leasing more than one unit (master lease) but you still have an option attached to that lease.

My favorite trick is to master lease a poorly run multi unit, at a monthly price that matches the current income.  Then as I turn the property around, I can create a down payment from the increase in rental income, allowing me to buy the property with none of my own money.

A second evolution is to tie the option to an amortization table, that way you get credit for the lease part as if you were paying down a mortgage.  The purchase price decreases every month.   Dont worry about the mechanics.  A good real estate attorney can do this for you.

To your success

Josh

PS feel free to connect