How can I sell my house and them rent it back to me?

[Jeremy Karja]

Hi BP,

I was toying with the idea of selling my home then renting it from whomever buys it.  What are my options in doing this?  Can I get at least a 1 or 2 year lease to do it?  How would I structure this?  How would I find the buyers to do this?

Here is my reasoning.  I think a correction is coming (not sure when but I would think within 2 years but who knows).  I want to capture my equity I have earned in my home in the last 9 years but I don't want to buy another single family house when the market is so high.  I also would prefer not to rent (but will if I have to) because I have 5 kids and I don't want to move them twice.  The reason I want to move in the first place is it takes me over an hour to get to my work and over 30 minutes to get to my kids school.  That is a combined travel time of over 2 hours for my wife every day and over 2 hours for me the days I go into the office.

Hope that all makes sense, thanks BP!

Jeremy

[Eric Schultz]

Jeremy Karja

If someone is going to pay full market value for your house, there is a good chance they will want to be an owner-occupant.

Someone looking for a rental property is going to make a different offer (probably lower) as they will need to consider repairs, capex and all other things impacting their net cashflow on the investment.

Some lenders will allow you to go up to 85% LTV on a primary residence HELOC, depending on your FICO score, DTI, other investment holdings, etc.

If reducing your commute time is priority, than you wouldn’t need to be concerned with drafting up a lease agreement with the buyer anyway. Rent closer to school or work.