Seeking Advice: I'm renting a house I want to buy

[Tom Horan]

Hi All - I'm not new to BP, but I am finally jumping into the discussion threads looking for some advice on making an offer on a property. Trying to get a deal under my belt. Thanks in advance for any helpful feedback.

I'm renting a house in Colorado (just outside Denver) that is owned free-and-clear. 1950's home, very cookie-cutter in this neighborhood with comps between 300-310k.

To get that ARV of 300-310k, it'd need about 25-30k in work.

I'm trying to figure out the best way to approach the owner with an offer. I'm paying 1400/month - and would love for those payments to go towards principal or interest if I could negotiate a seller-finance deal, or a rent-to-own situation. 

I'm not really in a time-crunch because this property isn't on the market - and I'm sure the owner is feeling pretty good about pulling in 700+ a month in cashflow. If you have advice on how to make this deal intriguing to the owner, as well as profitable as an investment - I'm all ears.

I appreciate the help!

[Jeff Rabinowitz]

I was recently approached with such a question from a long term tenant. They are great tenants and I do not wish to lose them. They say they are happy in this house and do not wish to move. I suggested they find out if they would qualify for a mortgage loan--they will. Now, I do not really wish to sell this house; however, I purchased it well and it has appreciated during the time they have lived there. Even though they say they do not wish to move if that is the best thing for them financially and they are able to move it is possible they will in the near future if I do not sell. I am sure I could rent this house again if they moved but I have been selling other rental properties lately in order to simplify my affairs. So...if we can come to agreement on the price of the home I may sell. 

Your situation may be a bit different if you are asking your landlord to seller finance but talk to them. I cannot see how it could hurt and you may be pleasantly surprised. Make sure you talk to the owner and not the property manager--the interests of both will probably not be completely aligned.