Investing when the numbers are tight....

[Keith Nugent]

A co-worker of mine loves the home she has been renting for 5 years, but the landlord is tired and wants to sell which may result in my co-worker being forced to move. Ideally, I'd like to pick up the property and let the tennents stay on...but the numbers have to work.

Property is a 3/2 SFR, well maintained, approx value $100k.

Current rent is $850, comp rents are $950 in the neighborhood.

Owner has no mortgage on the property and notionally wants $98k.

May be some flexibility on the price/rent and the tennents are open to a lease option...but I think the owner wants to get cash in hand and be free of landlord headaches. 

What ways would you structure a deal so that its a win/win/win?

[Jeff Rabinowitz]

I see on your profile that you haven't done any deals yet and you are thinking having a co worker for a tenant might be a good first deal. This reminds me of a situation I had when my daughter went to college. She was thinking it might be a good idea if I bought a house for her to rent while she was going to school. (It actually was a good idea. I know a guy who (whose father) earned enough to cover his tuition by renting a house and selling it after he graduated.) The problem with my daughter's proposal was she wanted her boyfriend to live there. I thought that was a terrible idea and not just because I didn't like him. The question I asked my daughter was: "Could you evict your boyfriend?" She was taken off guard and told me several reasons why that would never happen so I asked my question again. She finally admitted that no, she couldn't. I ask you: could you evict your co-worker? If your answer is no you shouldn't even consider this.