Posted by ron on March 26, 2006 at 22:11:12:
We call those twinhomes here
twinhomes are 2 seperate titles
duplex is one title, one owner
Lease option do’s and don’ts - Posted by Todd Anderson (WI)
Posted by Todd Anderson (WI) on March 24, 2006 at 22:42:11:
Hi everyone. Its literally been years since I have posted here, but I am always happy for your advice.
Tomorrow I am to look at a 1/2 duplex that the seller is willing to L/O. I asked about subletting it to a third party and he agreed to talk about it, so he seems flexible. He is a builder and got this property as part of a deal when he built someone a new house.
I have no experience with L/O, so my question is this: Is there anything specifically that I should watch out for, or try to get if I negotiate this deal?
I will have more information after I meet him tomorrow. Any responses are appreciated. Thanks.
Todd A.
Re: Lease option do’s and don’ts - Posted by Luke Hoppel
Posted by Luke Hoppel on March 25, 2006 at 10:13:31:
Basically what you just asked us is to explain lease/options.
Conti and Finkle wrote a pretty good book on that entitled “create multiple streams of income”. It explains everything and goes in depth with a lot of it.
I would read that.
Also how can you buy 1/2 of a duplex? A duplex is one building with 2 units. I wasn’t aware you could purchase 1/2 of one…I don’t think you can, but I could be wrong.
Re: Lease option do’s and don’ts - Posted by Rich
Posted by Rich on March 25, 2006 at 11:00:43:
Is the duplex a property with two deeds, like a mini-condo? Or are you being sold a TIC (Tenants In Common) interest where you would find yourself in a partnership with someone else?
I would make sure there was a separate deed for each unit, then ask how common repairs (such as roof problems) are handled. Getting into a partnership is fine if you know and trust the other parttners, but there is a risk that the partners may be WHY the seller wants out.
Re: Lease option do’s and don’ts - Posted by Todd Andersoon
Posted by Todd Andersoon on March 25, 2006 at 10:57:27:
Luke,
I wasn’t trying to ask for lease/options to be explained to me, but I see that is basically what I did. I was just looking for anything BIG that I should avoid or try for.
As for the 1/2 duplex thing, yes a duplex is one building with 2 units. On paper they split the property up, they call it zero lot line. Its like a condo conversion. Its very big here because the seller can make more money by breaking them up and selling them individually instead of selling them whole.
Todd
Re: Lease option do’s and don’ts - Posted by Rich
Posted by Rich on March 25, 2006 at 17:46:06:
So you are saying that it is legally like a townhouse, separate deeds, utilities and so on and not a partnership?
Re: Lease option do’s and don’ts - Posted by Todd Anderson
Posted by Todd Anderson on March 26, 2006 at 14:30:51:
Rich,
You got it.
Todd