Hey BP,
Hoping I can get some help here. My family is looking to downsize and we currently have a rental that we are going to remodel and move back into. We have notified the current tenants, who have been incredible. Our ultimate goal in downsizing is to free up some capital for other properties in the near future. They run a small daycare in the house, but have taken great care of the property and never pay late. Since they run a daycare, it may be difficult for them to find a landlord ok with that. They have considered purchasing, but since one of their incomes is mostly written off in expenses they don't think they would qualify. They asked if they provide a down payment, if we would be willing to get another property and rent back to them (with a 5 year lease commitment) and somehow workout a payback. Because of our current mortgage, we wouldn't have the money for another down payment until we get out of this place.
So my questions are : is this possible? Would we need to set up a partnership if so? Should we avoid this situation like the plague or should we do what we can to jump on it?
All of this is in Austin, TX.
