50% Investment Sale with Vendor Rent Back

[Dan260]

Hi Guys,

I saw an ad in the classifieds on the weekend that advertised an investment property for sale in the coastal suburb of North Fremantle in WA. The vendor was selling 50% of his Principal Place or Residence and renting back the sold portion.

I was wondering what other investors experiences in the following questions:

1. Would Investors consider 50% purchases of an investment property?
2. have investors had any experience with a purchase and rent back to vendor before?

I thought that this particular investment would be good as it is quite expensive to get into North Fremantle and also the vendor/ tennant would be willing to sign an atrractive lease for 5years.

But anyway, I am more interested to hear investors thoughts on this type of situation investment.

cheers
Dan

 

[sbe]

Could be interesting trying to finance 1/2 a property.

Then you've got the what if they need to sell or you need to sell thing.

You default and they lose their house.
They default and you lose the house

Of course, it could also be a dream!

Make sure you've got responsibilities etc covered off really well, and in writing !!