Rental Property Investor · Everson, WA · Member since 2016 · 11 posts · 1 vote
Hey everyone,
I have a house with a current tenant in it, who has been there for 6+ years. We'd like to sell the house, and figure it's worth giving the tenant a 10% discount to buy it from us. (Saves us from having to get them out and doing the necessary cleaning/upgrades to get top dollar for it, in addition to the vacancy time). It's somewhat unrealistic that they'd be able to come up with a significant down payment, so I'm wondering if there are any creative ways for us to sell it to them in order for them to qualify as a buyers. My only thought so far was to 'sell' it to them for fair market value, and then offer a significant seller credit at closing to act as their down payment. Do the banks go for stuff like that? Any other suggestions of ways to make it work? The house is worth about $340k, and we'd be willing to sell it to them for $310k
Medford, MA · Member since 2016 · 205 posts · 47 votes
9y
Hi Angela,
Are you willing to seller finance to the current tenant. This is a very plausible option, however based on what you said, it seems you would like to sell for the full value and move on. You can get creative with owner financing/ Lease Option to make this work if you are willing to let the money come in slowly.
Medford, MA · Member since 2016 · 205 posts · 47 votes
9y
Hi Angela,
Are you willing to seller finance to the current tenant. This is a very plausible option, however based on what you said, it seems you would like to sell for the full value and move on. You can get creative with owner financing/ Lease Option to make this work if you are willing to let the money come in slowly.
Real Estate Broker · Winthrop, MA · Member since 2014 · 260 posts · 199 votes
9y
I think its admirable what your trying to do, but getting the tenant out and re splashing the unit, or listing it at 310 ( create a bidding war if its 10 % market ) Im going to guess is going to get you the same result much faster and with less headaches. Put it on the market, probably sell for more, do your 1031 ( start looking now ) and be done with it. Or, Cash out Re-fi, by your property you want, and then figure it out later.
Real Estate Consultant · Brookfield, WI · Member since 2014 · 873 posts · 350 votes
9y
@Angela Strotz - I would go with a lease with an option agreement. You would need to verify him/her income and credit score. If they have income issues I would do the deal. If it is a credit issue do the deal and help them fix their credit.
To your point, you are limited to a 6% seller concession. The another thing you can do is seller them on land contract and after 1 year they can refinance you out.