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Good Morning!
I have a potential Master Lease deal in the works and I’m looking for some feedback. The home is a Single Family Residence in a nice neighborhood and could command around $950 per month in rental income. However, the home does need some cosmetic repairs (paint, clean-up, misc repairs). The owner doesn’t have the funds or desire to prep the property for rent.
Question:
How much are you willing to invest on cosmetic repairs on a Master Lease? What other concessions might I ask for in exchange for paying for the updates?
Thanks.
Garrett Humphrey
HI Garrett
A good way to handle the expenses of repairs with a Master Lease is to negotiate that you will not pay the owner any rent for 5-6 months or how ever many months it will take to recover your expenses.
If they don’t go for no rent, you could negotiate that they only get $200 a month for the first year, then they get full rent the 2nd year.
Remind the owner that you are making their property better, at your expense.
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