House hacking multi family owner wants to sell and lease back...

[Blaine Kosek]

I analyzed this 3plex and found some pretty good numbers.  Everything looks solid and it can be a nice cash flowing property. 

After talking to the owner he mentioned he’d like to stay and rent for maybe a year after the sale and he doesn’t seem to have that much equity.  When it’s all said and done it seems like he may make around 10-15k, max.

With Covid issues everywhere, we are doing are due diligence to check On the current tenants and the owners employment situation.  As of now, the listing agent claims they all have never been late on rent and they are currently working.  

Owner also filed for bankruptcy last year. 

I appreciate any thoughts you can offer

Thanks 

Blaine 

[Wyatt Franta]

Hey Blaine,

Treat the current owner as your first ever applicant for your newly acquired multi-family property. If he would meet your standard application requirements, then welcome in your first new tenant.

If he doesn't meet your standard application requirements, apologize and tell him you aren't keen on the lease-back option.

OR, offer him a month-to-month/3-month/6-month lease until he can find another place to live. 

As long as your returns are protected, you can go about this in almost any manner you'd like.

Good luck!