Two months ago I had a young girl and her parents come in to my office looking for a rental. She had started a new job in Connecticut and was tired of the long commute from her parents’ home in New York. Her budget was small and the rental opportunities were not great. When her parent suggested considering spending an additional $100-$200 for a nicer rental, I came up with another idea.
I asked if they were familiar with a short sale. It was a huge step, but the thought of purchasing her own home was planted. After reviewing the inventory, we found a very nice condo that was available as a short sale. It was nicer than any of the rentals that we could have looked at, even in her higher price range.
Well yesterday, as a first time buyer, she closed on her new condominium. She now has a place to live, that she owns, that costs less than the cost of the rentals we had been looking at. And when she is ready to move on with her life, she will be able to rent out this condo and have a positive cash flow. In this situation it made sense and was a great decision.
In this current market, the question of renting or purchasing can be happily answered with the purchase of a short sale property. Check with your rental clients, you may be able to help them find more than they anticipated and help them become home owners.