Question On Lease-purchasing Multi-families
I have a possible deal to lease purchase a 6-unit apartment building. My question is how can I handle the situation that the current owner has tenants in the building already. Should he appointment me as property manager so that I can increase the rent/fix the property etc? What kind of wording should I use in the agreement?
Thanks for you help.
I am deleting your duplicate post of this in the Multi-family forum.
Yes it is possible to lease-purchase a 6 unit apartment. You have a couple of options as to how to word such a transaction:
1) You can master-lease the building with an option to purchase.
2) You can take a management agreement with an option to purchase.
Which you do is probably either unimportant or depends on more details than we have in your post. One word of warning if you take #2-- a management agreement is essentially an employment contract. If the property is located in an "at will" state it may be possible to cancel the employment agreement (including, perhaps, the option agreement along with it) without cause.