JerseyJeff 0 Report post Posted March 20, 2003 All: I have read through every thread since the inception of the Naked Investor, and no one touched base on two family homes. One post spoke of multiple dwelling units of 6 or more, but what about 2 families? Can you set up a "rent to own" for the downstairs tenant and just a straight lease for the upstairs? Would this work? Has anyone dealt with this before? Is it better to work solely with one family homes? I only ask because they are alot of two families by me and this would cut out alot of opportunities. Thanks,JerseyJeff Share this post Link to post Share on other sites
Summer 0 Report post Posted March 21, 2003 Good question! I haven't heard the term Mother/Daughter since I left Long Island, where they are very popular. I'd like to hear Michael's input on this.Summer Share this post Link to post Share on other sites
MichaelC 160 Report post Posted March 22, 2003 Yes, multi units and lease purchasing work well together. The concept is the same. The beauty of a correctly done lease purchase is you have an agreement which allows you to buy, sell, sub-lease, sub-lease purchase, and/or assign the entire contract. In other words, you control that property. Once you do, there is no reason you cannot lease purchase one unit and lease the other.Whether it is a duplex, triplex, or 16 unit apartment building, it comes down to what is agreeable between you and the homeowner. Share this post Link to post Share on other sites
JerseyJeff 0 Report post Posted March 27, 2003 Say I one-year lease/purchase the first floor, and one-year lease the second floor. 6 months down the line, the L/p first floor decides to excercise the option to purchase. How is the remaining 6 months on the lease to the second floor handled? Is it carried to the new owner? What if they don't want the tenants, can they decide not to carry the lease? Are we liable? Is there something that should be built into the contract stating if the l/p is excercised, the second floor's lease is transferred to the first floor/new owner of the house? Sorry for all the questions. JerseyJeff Share this post Link to post Share on other sites
MichaelC 160 Report post Posted March 27, 2003 If the upstairs tenants have a one year lease, that lease must be honored by anyone who is purchasing that property. Share this post Link to post Share on other sites
Summer 0 Report post Posted March 27, 2003 Hi Jeff. I'm curious are these mother/daughters you're talking about legal, separate 2 unit homes. I usually hear the term mother/daughter used when it is an "illegal" rental and it's supposed to be a relative renting the 2nd unit. I guess the t/b exercising the option would still have to honor the prior lease arrangements, but I'm just curious what the situation is. Also, if the home were to be inspected and/or appraised prior to closing and it's an illegal second unit I don't know if the tenants can be in there with their possessions. Just a thought. Anyone else have feedback on this type situation?Summer Share this post Link to post Share on other sites
JerseyJeff 0 Report post Posted March 27, 2003 I usually hear the term mother/daughter used when it is an "illegal" rental and it's supposed to be a relative renting the 2nd unit.Summer, I may have mis-termed. I am referring to a two family home. Two separate units. Upstairs and downstairs. If the upstairs tenants have a one year lease, that lease must be honored by anyone who is purchasing that property.MichaelC, does this need to be stated in the contract, or is it a law? JerseyJeff Share this post Link to post Share on other sites
MichaelC 160 Report post Posted March 27, 2003 MichaelC, does this need to be stated in the contract, or is it a law?I believe it is the law, but I'd add a reference in the agreement anyway. Share this post Link to post Share on other sites
