Live in - Sublet?

[Alan Brown]

Hi all,

I have been searching for a property in a specific college market Connecticut close to my full time job. My plan is to use FHA, live with some roommates, move out in a year and repeat the process to start building up a portfolio. The problem I am having is that there isn't a lot of inventory that fits my criteria right now.

I came across a rental listing on craigslist that has been up for some time now that fits my criteria exactly. I believe this property is listed a significant discount to what she could be getting. It seems that A) she missed the time period most off campus housing gets leased and B) she doesn't currently have students in it, but it is in and ideal location. My first idea was to approach her and propose that i help her get it rented at a higher rate for a share of the increased income. My second idea that i am leaning more toward is to present her with idea that i'll lease the property, live in the in-law unit and then find tenants on my own to lease the other three bedrooms. This would achieve my goal of netting out my live in cost while i continue to find the right property to purchase rather than buying for the sake of doing my first deal. 

Has anyone done this before? is there any guidance you guys can help me with on my approach to pitching this to her in a way that establishing trust and transparency?

I appreciate all your feedback