Hi all;
I had contact with a seller who has a duplex. How does one structure this to do a CA? Might be too complicated for a SLO. Would you use his total price and set the lease, etc. for each side or as a whole? Thanks for any help!

Eric

Eric, what are the details? The numbers, for example. Are both units occupied? What type of leases? Etc.

MC;
Duplex for sale at 199K, owes 155K or so. He thinks the 199 is a fair price; comps are pretty close to that. Rent: 795 and 825 per side. Both are occupied on a month to month as he told the tenants he wanted to sell. Good area and school district. Thanks for any advice!

Eric

Man he has no equity based on Income for property. If I was to buy he would be writing me a check.

Eric, as we discussed on the phone, one possibility would be to approach this with a sandwich lease. Lock up the property for a minimum of 36 months at the best price you can get. Get a discount rent in exchange for you handling the maintenance and repairs and tenants and toilets. You'll receive cash flow each month and, hopefully, between now and the end of the lease agreement between you and the homeowner, you'll enjoy the appreciation that develops. At some point you can decide if you want to exercise your option and buy, adding a cash flowing duplex to your portfolio.