Tired Landlord Free and Clear - Posted by Bill
Posted by Bill on March 13, 2001 at 16:41:33:
A landlord from out-of-state called from a postcard I sent. (I sent it over a year ago, if you can believe it!) Anyway, he and his wife are retired, and are not wanting to deal with rentals anymore. This is the last rental house he owns in my city. He has a local management company handle everything.
Tenants have been in the house for a few years, and are good tenants, and he doesn’t want them to know he’s interested in selling (OK, Mr. seller, how am I supposed to see the inside?) He’d prefer it if they could stay-on as tenants as long as they want, which would be alright with me if I get a good enough deal.
He’s interested in being cashed-out. I asked about the possibility of financing me, but he’s not interested in that. He owns it free and clear, or, there’s a small remaining loan.
I’m OK with holding this as a rental, but I’m not sure about what to offer him. I could get a loan, but I don’t want to put much downpayment money into it. I’d like NOT to get a large loan, just so I can say I own this rental… it’s got to cash flow well, or no deal.
What do you do with owners like this? Do you just try to low-ball, and if they don’t take it, you move on? Or, do you pretty much IGNORE their desire for all cash, and present a few offers including things like 1/2 cash now, 1/2 later, etc? And creative deals aside, what if you can get it at a price that allows a decent cash-flow, but you’d have to get a new loan? Are you absolutely opposed to getting loans in your name? My question is a general one, not just about this property.
Sometimes I wonder if a myopic focus of trying to get into EVERY property with little or nothing down makes us miss the occasional “keeper”.