Posted by Michael (NM) on January 08, 1999 at 12:22:23:
I’m looking at a 3/2 for my residence. Seller is willing to L/O the house for (PITI) $750 per month. They are asking 75K, fmv is between 68K-75K, rent values are 675-775. Offering 72.5K option price and 100% rent credit for the first 6 months with 40% rent credit for remainder of contract. I will try and sell the owners on this, as they have been transferred from New Mexico to Virginia on short notice. The high rent credit would allow me to show enough down payment at the 6 month mark to qualify for FHA and get the property bought sooner and out of their name. They owe approximately 64K on the house and will owe about 61K after the first year of the lease. If they accept this then I should owe 68K if I purchase after 6 months and 66.2K after 1 year. My question is: Does it matter how much rent credit I’m allowed as long as I owe them more at closing than they owe on their loans? Does this deal look okay?
Any comments or critiques welcome.