Buy Back Option

[Andrew Bosworth]

I've targeting a property in my area that is soon to be listed at a Sheriff's Sale. Prior to the sale I want to make an offer to the current owners for the price of the outstanding debt and property taxes. With the sale I would also propose to them a rental/lease agreement as well as a buy back option. To me this seems like a win-win for both parties - I purchase a property at significant discount with instant equity and healthy cash flow, while they get to remain in their property.

Am I missing something? Would you include the buy back option, or simply rent it to them? What experience do you have with this type of purchase agreement?

[Jon Holdman]

@Bill Gulley I don't think there's an existing option. I think @Andrew Bosworth

is proposing to buy the house from the existing owner at a high enough price to pay off the existing debt and back taxes and then lease/option it to the former owner would become the tenant/buyer.

The owners may treat you like a knight in shining armor right now. But if they miss a payment and you have to evict or even just get pushy about getting the rent you will quickly turn into the evil investor who stole their house.