Seller Wants To Rent Back
Has anyone done this successfully with a rehab project. I am making an offer on a 2 family I am going to Condex. the seller wants to rent back until they find a place to buy [downsizing]. I will have holding costs of $5k/mo. As long as they are in the unit I cannot get in to start rehabbing. I would have to start in the other unit.
has anyone rented back successfully? How do I avoid a scenario of 6 months later they still haven't moved out? huge holding cost...
anyone rent back to a seller?
I have not and will not allow the seller to stay in the property after I purchase it. There is just too many potential problems.
Always trade cash for keys. If you have another rental, you can move them in there, but I wouldn't allow them to stay in the property.
Just imagine what happens if they decide not to move out and claim that "the shady investor pulled a fast one on me and I didn't know what I was signing." You could very well end up in court. Best case senario you'll have a pile of legal fees. Worse case senario you'll loose a house you already started ro rehab.
Put a cap on it . Seller will rent for $ a month not to exceed ___ months.