This FSBO has all the makings of a deal, right?
Hello All:
An attorney has 2 properties FSBO as he is tired of dealing with college student rentals, an area I specialize in as I rent to about 70 college students.
He currently rents Property #1 for $1050 (I can rent it for $2000) and he rents Property #2 for $1050 (I can rent for $1500). He is asking full price to sell them and I don't ever like to pay retail, but know there is vast spread to make between what he rents it for and market rent.
I've approached him about doing a lease/option from him that allows me to sublet and even with me paying 6 months of rent upfront. He seems somewhat flexible but prefers to sell outright. Does anybody have any suggestions on how to get this done? I have heard about wraps and sub-2's but don't know much about them. There has to be a way to make this work, right? Any help would be appreciated!
Here are some other details on the deal:
Property #1
Asking Price: $100,000
Est. Value: $100,000
Est. Mortgage: $78,000
His current monthly PITI: $875
His Rent price: $1050
My Rent price: $2000
Spread for me: $950
Property #2
Asking Price: $100,000
Est. Value: $95,000
Est. Mortgage: $70,000
His current monthly PITI: $825
His Rent price: $1050
My Rent price: $1500
Spread for me: $450