Good morning everyone....
I`m a new investor and I`ve read quite a bit on this forum (all good info), but I`m not sure if this has been discussed before (if it has, could you please direct me to it?).
The Issue
I`m in the process of closing on a property where the owner has expressed interest in staying as a tenant. I`m of the opinion that this is a nice solution to finding tenants.
However, I`m concerned that knowing the owner has had recent financial difficulties (late on maintenance fee, and probably mortgage payment - which is probably why they sold), if a problem occurs I would be the last to get paid.
Given a conversation with the owner, once the prop is sold, most of the debt will disappear, and based on their income (which I have not verified yet), they said they would be OK. They also mentioned that because they like the area, they would like to stay indefinitely (which would be nice to have).
We are planning to go through a formal rental application, and give them the opportunity to explain whatever is there that negatively affects them.
Given the above, has anybody gone through something similar? What advise can you give us? Would there be something we left out that we should consider? Are we over-thinking this, and allow the owner to stay or ask them to please find another property?
All comments would be GREATLY appreciated.
Thanks.
I`m a new investor and I`ve read quite a bit on this forum (all good info), but I`m not sure if this has been discussed before (if it has, could you please direct me to it?).
The Issue
I`m in the process of closing on a property where the owner has expressed interest in staying as a tenant. I`m of the opinion that this is a nice solution to finding tenants.
However, I`m concerned that knowing the owner has had recent financial difficulties (late on maintenance fee, and probably mortgage payment - which is probably why they sold), if a problem occurs I would be the last to get paid.
Given a conversation with the owner, once the prop is sold, most of the debt will disappear, and based on their income (which I have not verified yet), they said they would be OK. They also mentioned that because they like the area, they would like to stay indefinitely (which would be nice to have).
We are planning to go through a formal rental application, and give them the opportunity to explain whatever is there that negatively affects them.
Given the above, has anybody gone through something similar? What advise can you give us? Would there be something we left out that we should consider? Are we over-thinking this, and allow the owner to stay or ask them to please find another property?
All comments would be GREATLY appreciated.
Thanks.