All Forum Posts by: Tyler Speelman

Sue K. 
My goal was to create cash flow by being the bank for the resident. If I did a lease option could I make the resident pay a down payment (option fee), make him responsible for all expenses and make his monthly payments greater than my expenses? Thanks for the response!

Hai Loc Okay, good to know. I was not planning on paying cash. I will have to research this further. Thanks for your response. Sue K. My goal was to create cash flow by being the bank for the resident. If I did a lease option could I make the resident pay a down payment (option fee), make him responsible for all expenses and make his monthly payments greater than my expenses?

Hello, Off market single family rental for sale in Ohio. Current resident wants to purchase house, but can’t qualify for loan. Asking price $139,900 Monthly rent $800 I told the seller I could purchase it if current resident would agree to rent to own agreement or land contract. Would you do land contract or lease option? How would you structure to make this a good deal? Thanks in advance for any guidance.

In the process of pre-screening a prospective resident before scheduling a showing. What are your thoughts on a credit score given from Buro De Credito pulled from timespan when prospective resident lived in Mexico?

Thanks in advance! 

Hello,

Seller has offered to fund repair escrow after closing. They have paperwork entitled "Escrow Agreement for Postponed Improvements" to guarantee they will return money after closing that I can have for reserves in my operating account. Do I have to use this money they "give back" to me in a certain time period? 

Also, do I have to use this money for improvements (maintenance/capex only)? 

Any input/advice would be appreciated. 

Thank-you in advance!

Thank-you again to everyone who commented! 

Update: The house that the residents intended to buy is under contract with someone else.

If they find another home they would like to buy prior to the expiration of their lease they have agreed to pay rent until the vacant unit is filled.

I told the residents I was happy for them and wished them luck on their home search.

@Michael Noto

Great point. They do not have a home under contract. Just planning for the future. 

Thank-you to all who responded! I just learned a ton and realized I did not take the time to look at it from the resident's position.

@Jonathan R McLaughlin Great points - if the residents left prior to the expiration of their lease and pre-paid I still worry about paying their gas bill in the middle of winter in cold Ohio to prevent frozen pipes.

James M. Billy Smith Thank-you for your advice. Would you have them pre-pay in advance for remaining balance before moving out then reimburse if necessary? Or would you trust that they continue to pay monthly until unit is filled or lease expires?

Hello, Resident wants to break lease because they want to buy a house. I told them no. Their lease expires April of 2020. They then asked to leave in January, but also pay the balance on the remaining months on lease. Would you consider letting them do this if they pre-pay prior to turning over keys? Or is that a terrible idea? Thanks in advance for any guidance.