Posted by B.L. Renfrow on June 05, 1999 at 18:46:18:
You don’t mention how you arrived at the $44.9K figure. Comps? Also, what are market rents for similar property?
IF your numbers are supported, then your figures sound pretty reasonable to me. Depends also on whether you have an underlying mortgage or if you purchased with cash. If you have mortgage payments, you obviously want to make sure the spread is enough to support PITI and provide some cash flow, since you don’t have a large back-end profit.
Also, I wouldn’t be in any rush to provide appliances; let your T/B provide them, or if you must, get used, not new.
Brian (NY)
I need a L/O opinion. - Posted by Duane
Posted by Duane on June 05, 1999 at 17:26:05:
I bought a HUD foreclosure about 2 months ago, put about $1,000 into it and am now ready to sell it. I would prefer an outright sale to get my money back, but I will consider a lease option. I purchased for $34,000 and am now listing it at $44,900 (that’s the sale price, not the L/O price). I realize that this might be too skinny for some people, but I would be happy with a $5000 profit on my first deal.
Anyway, here’s what I’m thinking for L/O numbers:
$46,900 (is this called the strike price?)
$1,500 option consideration
$550 / month rent
$50 rent credit
The only potential problem is the house is a one bedroom and there are currently no appliances in it. So if I L/O it, I still need to buy a stove and fridge. Thanks for any opinions.