When Should I Offer to Sell My House to Tenant?

[Kraig Kujawa]

A few years ago, I bought a house for my girlfriend and I to live in. Plans changed, we moved, and I ended up renting it out.

It's in Austin TX and appreciating very well. I lose about $100/month after expenses, etc.

I just rented it out to a really good couple in May. They wanted a 2 yr lease, I said 1 yr (because I need to be able to raise the rent). So we know they're thinking at least 2 years.  The house is now worth $650k

I'm thinking about whether they might want to buy the place and when/how to broach the subject. Their lease ends in May. Has anyone else done this? Of course, I've heard of Lease Options, but those are usually better for lower appreciation markets / offered from the onset.

Thanks

Kraig

[Danny Webber]

Kraig,

I am in Austin and recommend the following based on your financial goals.

1. Lease options are only good for 180 days. 95% never close- avoid unless they put up a large down payment, qualify via RMLO - do not exceed 180 no matter what on lease option

2. Austin is a booming market- why not sell at the end of the lease?

3. If you want residual income and not sell with no hassles/maintenance- look into a mortgage wrap . It offers residual income, good dn pmt, and no maintenance issues

4. Look at creative ways to raise the rent, pet rent, lower deposit, etc... rents are superior to deposits because you never have to return them +/-

Does this help?

What part of Austin is the house in?