As you can see I am a newbie myself, but it seems to me a semi-basic theory. Although a lot of things can go wrong and lots of problems with new tenants, that is another story in itself. Basically, you are gong to go out and find a house that you would like to L/O. Your documents(which one i dont know) should state that you can sub lease this to a tenant. At that point hopefully you will have also included that your first payment isn'd due for say 2 months. You take those two months to find a tenant and sub lease with an option for them to buy it. If i am correct you end up buying from your owner and collect on the tax benefits at say a year. IF it happens then another 1-3 years down the road your tenant buys and you would have collected money up front from them to allow them the L/) and you would have also made aprox $50-$100 a month from a higher rent than what you payed the real owner. Basically, that is why I have got out of reading on here for about 2 hours!!! Good luck and I hope to learn more and eventually make my first investment!
As you can see I am a newbie myself, but it seems to me a semi-basic theory. Although a lot of things can go wrong and lots of problems with new tenants, that is another story in itself. Basically, you are gong to go out and find a house that you would like to L/O. Your documents(which one i dont know) should state that you can sub lease this to a tenant. At that point hopefully you will have also included that your first payment isn'd due for say 2 months. You take those two months to find a tenant and sub lease with an option for them to buy it. If i am correct you end up buying from your owner and collect on the tax benefits at say a year. IF it happens then another 1-3 years down the road your tenant buys and you would have collected money up front from them to allow them the L/) and you would have also made aprox $50-$100 a month from a higher rent than what you payed the real owner. Basically, that is why I have got out of reading on here for about 2 hours!!! Good luck and I hope to learn more and eventually make my first investment!