Lease option to rent out over-under duplex

[Jay Berget]

Hi everyone,

I have come across an over-under duplex that is vacant and has been FSBO for quite a while. It's not a place I really want to live, but I believe it has a rental history and could rent for at least $2200 total. (Prices and rent are crazy here.)

The seller is willing to offer financing and a 5 year lease-option for at least 10k down and whatever the payment would be. He doesn't want to worry about it anymore because he's a university professor and running multiple businesses. 

I think the price is high at 285k and should be closer to 225k, but it says the basement apartment has rented for $1125 and the upstairs is nicer than that. I'm looking for more experience managing properties, but I have owned my own home since 2011 and now rent it out back in Wisconsin.

I realize there are a ton of factors here, but it's a pretty unique opportunity. If I can fix it up (cosmetic and cleaning needed) and get good renters or find another buyer, I should be able to make my down payment back and cash flow on top of it even if I let the option expire. I just have to put in the work.

Seems like it would work as a side job, but is it too weird and complicated? Are there creative protections I can build in to the offer that wouldn't spoil it for him? I'm looking for cash flow mainly.

Thanks,

Jay