Can you use Master lease option or sandwich lease option for student housing?

[Chad K.]

After a previous post some of the individuals that took part In the conversation about some creative ways to fund properties. Two methods that stood out to me were master lease and sandwich lease option. I wanted to use those methods for student housing rentals in the Charlotte area. I would love to team up with a local experienced investor of these options in the Charlotte, North Carolina area. But if you have any advice fill free to leave a comment

[Bill Gulley]

Originally posted by @Chad K.:

@Bill Gulley

 thanks for the info, from my understanding the master lease option allowed to lease out the property to tenants than keep whatever excess cash you have after you have paid expenses. So I wanted to rent a property out to local college students. 

Yes, as Brian mentioned, you guarantee the owner's NOI, or a base rent and the idea is then to increase your income above that through good management, forcing appreciation. You increase the value establishing equity for your option to purchase later on.

Where many go wrong is trying to give another buyer an option after yours, mentioned above. Leasing to students can be a good....great target market for this tactic. :)