6mo. L/O? - Posted by New in MD

Posted by new in MD on July 15, 2002 at 14:38:11:

I wanted to do a L/O and do 1 of 2 things

  1. sell my option to an investor
  2. rehab and sell retail w/double close

Im told you should know the fmv in your target area and how fast the houses in that area sell.
what im asking is if it takes more then 6 mo. to rehab and resell is that too big of a project to take on as an investor. What is the general rule of thumb as far as time is concerned when rehabbing and selling retail?

Thank you for your post Clair.

6mo. L/O? - Posted by New in MD

Posted by New in MD on July 15, 2002 at 12:28:34:

Does anyone think it would be wise to get an L/O on a property for just 6 mo.? How long would it take to figure out repairs and if it will resell. Is 6 mo. too short of time?

Thank you

Re: 6mo. L/O? - Posted by Clair-MO

Posted by Clair-MO on July 15, 2002 at 12:37:12:

New in MD, It would be better for you to lease option for 12 months with 2 renewals (12 months each). There are several questions that I have to you.

  1. Are you going to live there yourself or Are you going to sublet the property to someone else?
  2. Do you know what the cost of rehabbing the property will be and How long it will take to rehab it?
  3. If you are going to sublet why not have your tenant buyer do the repairs for you and deduct the cost from the monthly credit?