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  • Can Beazer Homes Avoid Bankruptcy? [View article]
    I don't think renting is such a great idea for Beazer. Too many ifs especially when it comes to repairs. You put a renter in a house and you open up to repairs that could cost thousands of dollars. I would take the approach of leasing to buy if the banks would allow Beazer to do so. You start one year warranty from day one of lease, make lease period 2 to 3 years to get out to 2015 date of Beazer debt maturities. Take a sizeable deposit to hook the lessee and cover Beazer. No repairs to unit other than those in warranty period and no repairs needed because lease will become a sale and "tenant" is not moving out. Have penalty clause to cover Beazer if lessee moves out and repairs are needed so they can tap that original deposit required at the beginning of lease. Deposit can also be built up over lease period so you at least have full deposit by the end of lease term.
    Aug 11, 2011. 03:23 PM | 2 Likes Like |Link to Comment
  • Can Beazer Homes Avoid Bankruptcy? [View article]
    On your comment about Beazer renting out some homes. Sounds good until the renters move out. The house will require some work no matter what. You now have the possibility of spending $ 2000 to
    $ 10,000 on repaint, fixing damaged floors, walls etc. If they were to do a 2 to 3 year lease to buy, to match 2015 date of major debt paydown, I would say they would be ahead. Take a larger deposit as a down payment and warranty starts day one with lease, no repairs required after warranty period which mean no repairs versus repairs they would have to do if they rented units.
    Aug 11, 2011. 03:21 PM | 1 Like Like |Link to Comment