Posted by Kevin (TulsaOK) on May 04, 2006 at 24:18:23:
Renewal of contract will be stated in the terms of the deal. In fact, when the seller and I crunched the numbers together, we agreed that 5 years would be borderline for cashing out. Short term appreciation is risky, but surely in 7 - 10 years this house will have went up enough in value to cash the sellers out.
My new proposal to the seller is 140,000 SP, either $1,130 per month (taxes and insurance included) and seller pays for all repairs or $1,030 per month (T & I included) and I cover repairs. These numbers give the seller a 7% ROI. Not unreasonable rates for an investor loan. This house may rent for more than $1,250, but I am low balling to cover my arss!