Posted by doug,ky on November 29, 2000 at 11:07:18:
Your post is a little confusing, you say you want to lease option the property, but you will refinance in 5 yrs. So, are you holding the property as rental or are selling it using anlease option. Either way, when you are buying a property , you need to figure what your expenses will be: Mortgage payments, utilities, vacancy, advertizing, maintenance, etc. The above example you gave does not have enough room to support the deal considering the other things you left out. Beware of those alligators, they’ll eat you alive.
Also, getting 85% financing through a conventional lender and a having the owner carry 15% probably won’t happen on an nonowner occupied loan. Buying a 120K home for 110K using conventiobal financing is not much of a deal. Now if you can take over the existing loan “subject to” then there might be a deal depending on the terms of the existing mortgage.