Posted by nate baker on September 15, 2004 at 14:42:39:
You could offer to take over the seller’s monthly payment - that way they are not paying a double mortgage for the next several months - and offer to pay them 235-240K in 3 years. Then find a tenant who is willing to pay premium over the market rent in order to have the option to purchase the property in 3 years. The tenant’s option is to buy the house at the market value at the end of the term. You collect 5K from the tenant up front and $1600 per month. You pay the seller $1500 per month. At the end of 3 years if the price of the home is worth more than your option price and the tenant wants to buy the house, then you get to keep the difference. Plus you made $100 a month and got 5K up front.