Lease/Option HELP!!! - Posted by Charles

Real Estate Investing
1

Posted by Eddie M. FL on October 25, 1998 at 16:40:25:

Charles,

1 yes

2 yes

3 yest

Charles, I would ask a litlte more for the house from your tenant/buyer. You can go 5-7% higher than Market Value, since you are giving terms. You can set your contract to say " $97,000 or Appraised Value at time of closing, whichever is higher.

Good Luck to you,

Eddie M. FL

2

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:

  1. Is it appropriate to negotiate no rent until I find a subtenant?

  2. Is it appropriate to sell the house to the subtenant for $95,000 ($3000 above market value)

  3. Is this a good deal???

Thanks in advance for your help.

Charles