2 yr rent with buy back - Opinion Please!!

[Andrea Kraft]

Someone recently reached out to me with a potential opportunity. This person is going through a divorce and has to sell their home, they have kids and want to stay in the property if possible. They are wondering if I would buy it from them, rent it to them for 2 years and sell it back for the same amount purchased. They would pay $2,500/mo in rent for the 2 years.

Market value is around $375,000

Would purchase for $325,000 - Would have to finance with 20% down...

Rent for $2,500

Has anyone else done a deal like this? How did it work out for you? Thanks!

[John Teachout]

Sometimes these work around schemes can come back to bite those involved. The sale wouldn't be an arms length transaction and if the divorce attorneys caught wind of it there may be ramifications. I'd steer clear.