DanielSun 7 Report post Posted December 19, 2012 Many houses have the basement rented out, I wonder if anyone tried to do a L/O with tenant buyer live upstairs, existing tenant in the basement. What are some things to consider in these scenarios? Share this post Link to post Share on other sites
MichaelC 160 Report post Posted December 19, 2012 Existing tenants can often be problematic. If they don't want to move or face any change in their existing lease agreement, their cooperation with showings and keeping the house tidy and accessible will be minimal. Of course, this isn't always the case, but has often been what I've faced. Another hurdle, Daniel, in the life of a Canadian lease option tycoon. Share this post Link to post Share on other sites
pilot76180 51 Report post Posted December 19, 2012 In the USA, we can still afford to live in someplace better than the basement....but now that we have socialized healthcare...that may change....BTW---does everyone here on the board realize that we have the social security #, but in Cananda they have a healthcare #?...or something like that. MC is correct..working with a house that has a tenant in place can be it's own challenge...they have no benefit to work with you. Share this post Link to post Share on other sites
Doug Pretorius (ON) 9 Report post Posted December 20, 2012 John, we don't have a health care # we have a health care quota. We're allowed 1 accident or major health issue (heart surgery, cancer etc.) in our lives. Anymore than that and we...well...die. It's terrible. You have no idea what you're in store for as socialized healthcare really takes hold down there. You might find that you even have to start paying more for...oh dear god...gas! Dan, the first thing I would look at is whether or not the basement tenant can RTO the main level, that way they have a huge incentive to work with you and you don't have any do any advertising. 1 Share this post Link to post Share on other sites
DanielSun 7 Report post Posted December 20, 2012 hmm...this particular house I am interested in is in the 500,000 price range. To rent this place would cost $2400 plus utility. I've find it's a little hard to find people to fill it at that price, and therefore increase my marketing expense. With the tenant covering some expenses, the rent will be $1650 for upstairs, which is a really good price. It will attract 100 people in no time. Of course, I am still going to look for people who have high incomes so they can cover the expenses, but I just think it makes things a lot easier. I am going to see how long their lease terms are and if they are good tenants. Share this post Link to post Share on other sites
MichaelC 160 Report post Posted December 20, 2012 I am going to see how long their lease terms are and if they are good tenants. That's your starting point. Share this post Link to post Share on other sites