Lease w/option to buy - Posted by Pat
Posted by Pat on August 22, 2003 at 23:38:34:
Need some advice!! I am currently renting a home for $1300 a month. About avg. or a little lower than market for area. The property has just been reappraised by the town for 164,370 (104,370 house 60,000 land) last appr. in 1992 for $111,367. Tax rate is 1.8532.
The owner has asked if I would interested in buying. The only option open for me at this point is doing a lease op.
I am considering doing the lease op. and then flipping the prop. and selling my op. to buy.
The house is in good shape but dated. It needs: new siding or possibly just painting (alumminum siding,windows replaced through out, refinishing of wood floors, replacing of asbestos floor tiles in down stairs, landscape alterations, paneling replaced by sheetrock, new light fixtures, cabinet refacing, bathroom appl. updates, counter top updates, cracked pavement drive way replaced.
All things that fortunately I am handy enough (or have connections to) get done at very low costs.
I need to know a few things:
How do I sell the Lease w/op. to the owner?
How do I determine how much to offer to give him monthly and how much goes toward purchase?
How long should I lease for? (note: my intentions are to sell my op. to buy in a simutanulous closing after improvements have been made.