Lease/Option HELP!!! - Posted by Charles
Posted by Charles on October 25, 1998 at 14:55:35:
I just found my first potential lease/option deal. Since I’m so new I would greatly appreciate some input from the more experinced. A nice couple is very interested in me managing their property as a master tenant. They are going to sell the 3br/2ba w/garage home to me for $87,000. The home appraised at $92,000. So far so good. Their mortgage plus taxes, insurance, etc. is $800 mo. They want $1000 in option money plus $800 first months rent to agree to set up this deal. They are also going to give me a rent credit of $400 a month. They also want me to begin regular rent payments before I find a subtenant. My questions are as follows:
Is it appropriate to negotiate no rent until I find a subtenant?
Is it appropriate to sell the house to the subtenant for $95,000 ($3000 above market value)
Is this a good deal???
Thanks in advance for your help.