Posted by Craig on July 01, 2003 at 15:19:03:
Thanks for the feedback. In response to your questions, I purchased the home as a personal residence when I was living in NC a few years ago. I decided a L/O was my best exit strategy given that I didn’t have much equity in the house and I didn’t want to dip into my pocket to my an agent’s commission. The tenant plans to purchase with a conventional loan and the $11k he has “saved” is to be his down payment. I have documentation of all payments and will back the fact that he has been “saving” credits toward the down payment. And the difference between applying the cash toward the down pmt vs. reducing the purchase price is the fact that the tenant does not have cash to use as a down payment. This $11k is essentially his 5% down, which will allow him to finance the rest.