Posted by Jill on July 15, 2007 at 16:58:04:
Sorry I dont know why that posted twice.
First L/O deal Please help me evaluate - Posted by Jill
Posted by Jill on July 15, 2007 at 15:35:09:
Okay I have found a house with the owner open to a L/O. My fear is that it is a higher end home. Not at the top but the average cost of homes in my area are around $260,000. This one is priced at $365,000. I live in Colorado Springs. Here are the numbers: My offer price is $350,000 rent payments $2200/ month (will cover his pmt) I am going to ask for $100/mo go to my purchase price. 3 year lease to start when I place a T/B.
Selling for $400,000 on an 18 month L/O with $10-15,000 down. Rent payment of $2500/ month with $200/mo credit.
Currently the market shows values within a 0.5 mi area going from $335,000 up to $412,000 for similar houses.
Appreciation is fairly stable in this area at about 5%/year.
My total expected profit would be $53,000. However I am worried that if my first buyers move out I will be stuck finding a new buyer and making pmts on this house. I do plan to just keep the 10-15,000 I get as a down payment in the bank and that could cover 3-4 months of vacancy if it happens.
Anyway, what are your thoughts on this deal and finding buyers for higher end homes?
Thanks so much for your help,
Jill