Model leaseback homes

[Peggy Liu]

I've just come across this terminology today and I've been researching online to see what's the drawbacks on it. Seems that there are a lot more pros than cons. Any feedback on model leasebacks? Another question, where would you find them? I did a Google search but only found outdated articles and Youtube ads on them. Would the best way to go about it to just search for big homebuilders and contact them?

[Peggy Liu]

It's when you buy a new model home from a builder and the builder leases it back from you for an agreed period ranging from a year to possibly three years. Here are the pros I found..

Taxes Paid by Builder
HOA Fees Paid by Builder
No Property Management Fees
Maintenance Paid by Builder
Repairs and Upkeep Paid by Builder
Immediate Long Term Tenant
Reliable Rent Payments
Fully Loaded Home at Today's Prices
Homes are Meticulously Cared for at No Cost to the buyer
Excellent Cash on Cash Returns
Easy Resale

The cons would be that the builder goes bankrupt or just doesn't finish up the community.

I haven't found a lot of cons. This is where I'm hoping someone else here can point out the risks to look out for.