On that amount I give them $50 per month credit. This is how I explain it to them:
If they were to take out a mortgage for a certain amount and their P&I payments were $950 per month then about $50 of that would go toward principal. $900 per month is a reasonable return for you on the amount that you have invested. A lot of people give much higher credits, but I’ve never had any problems the way I do it.
Any suggestions on how much rent credits to give on the following:
FMV: $115,000
Loan Payment: $760
Lease Payment: $950
Option Price: 120,000 in 12 months (I actually have a “refinance” appraisal now at $120,000 but it will not sellfor that)
How much monthly credit should I give a tenant for paying rent on time.