Need help with LO on this listing PLEASE!!!1 - Posted by Dan

Posted by Dan on May 11, 1999 at 01:40:13:

One more question you mentioned that an option would give me time to find an owner occ. It is my understanding that I have to carry the payment I agree to with the seller for the entire lease. Is there anyway to buy some time with an option. Maybe by closing on a strategic date?

Need help with LO on this listing PLEASE!!!1 - Posted by Dan

Posted by Dan on May 10, 1999 at 02:31:57:

Just reduced! Owner relocating, beautiful 1 br. in mint condition! Just $44,900.

I found this in todays paper. After reading this site for days and hours until my eyes are blury it seems that this would be a good candidate for a lease option.

The interesting thing to this is I would consider moving into this property. This should allow me time to find a buyer either conventional or another LO.

My thaughts were LO the property for 2 years @ about 35K try to get some rent credit applied as a DP I don’t have much capital or great credit. Around the 10 or 11 month mark try to LO it to someone else for 12 months @ about 40k. Exercise my option at the end of th 24 mos with the rent credit as a dp close shortly thereafter with my buyer. Would this allow me to basically pocket the rent credit that I accumilated over the past 24 mos and keep the profit from my buyer. Any advice would thrill me greatly and you would be helping someone do their first deal. I am desparate to own my own property or at least control it. I am sick of hiding my dog from my landlord. Also my rent is currently 600/month. Does that sound like a reasonable rent price for this new property I am considering and posiibly around a 100 rent credit to make my actual rent 500/ month.
I know I probably went into way to much detail but I am trying to give as much info as I can as I am not sure what is really needed to figure this out effectively.
Also rents in this building are about 650-700.

Re: Need help with LO on this listing PLEASE!!!1 - Posted by Rich_PA

Posted by Rich_PA on May 10, 1999 at 12:47:34:

You find market rents by looking in the newspaper rental ads. I don’t think we can tell you how much you should rent it for… I don’t even know where you live!
I’m not so sure a 1BR is a good thing to buy. Maybe in some areas it is, but not in any state that I’ve lived in.
I assume its a house, you didn’t say.

More info for Rich - Posted by Dan

Posted by Dan on May 10, 1999 at 17:24:11:

I apologize I probably wasn’t clear the rent for this unit is $700. I know this because it is a condo and I researched what the other units are renting for. I guess my real question is do I gain any advantage in time or money by moving into this unit. I am not in a position to take on a second housing payment if it takes sometime to do an lo or even find a renter. This would be my first deal and I am looking for some extra security. So I can keep my wife.

Keep the wife - Posted by Bud Branstetter

Posted by Bud Branstetter on May 10, 1999 at 22:17:01:

Remember that condos have monthly fees that have to be paid out of the rental amount. They also have assessment that can be a killer. Investigate the financial health of the assoc. first. Condo are not as liquid as SFR but because of the nature of the animal they can cash flow nicely. Your best bet is to enjoy the possibility without the responsibility. An option could let you wait until you found an owner occupant. Moving in yourself can help but seldom does it coordinate when you want to move that you find a buyer.