Follow investor / neighbor / friend offers deal. Need objective analysis!

[Jack Tucker]

My friend and neighbor has offered me a deal. He's a pure flip guy and I'm more of a buy-and-hold kind of guy. The cap rates don't excite me, but at the same time I see the equity in the deal. Read why he's bring this deal to me - so these nice renters have the opportunity to stay. Advice appreciated!

"Jack, I purchased this home with the usual intention of a quick flip. It was long term occupied at the time and I gave the occupants a short term lease to give them a chance to find something. I required a $2,500 non refundable deposit and $800 month. Deposit was paid immediately and rent has been prompt each month. I actually regret selling this one but as you know I am not in the rental business. This couple would absolutely love to stay long term in this home and not only do they keep it clean and ship shape they also do their own repairs. Never have asked for anything. The best scenario for the both of us would be to sale to an investor who would allow them to stay. The condition of the home is excellent and I am willing to let it go much below market if I can find someone who will allow them to remain in the home. They would be more than happy to pay a very large deposit and could possibly pay more monthly if needed."

"About the home it is a very large 2250 square ft with a large shop building located on over an acre on a paved road. It sold in 2006 for 175k and the current cma is 145 to 165. If I list with an agent within the next couple weeks my asking price will be 155. However before I list if I can find an cash investor willing to move quickly I will let it go for 115 and pay all closing cost including title policy. I really like this couple and hope to find someone that will allow them to remain. They would even be willing to do a lease to purchase if they needed or even an owner finance. Let me know if you or someone you know is interested."