L/O'ing your personal residence - Posted by Dakotajim

Posted by Dakotajim on January 22, 2005 at 19:43:28:

I would like to avoid a $6K prepayment penalty on my personal residence by lease optioning the house until at least Feb. 06. Our kids (triplets) are graduating from high school and we’d like to take the opportunity to downsize early this summer (05)

I understand the basics of L/O (I have Ron legrands coursework) but I’m interested in finding out any possible “gothchas” that others may have experienced in doing this type of transaction.

What impact will the L/O have on finacing the new “downsized” property?

We live in South Dakota, the house appraised at 240K during re-finance in 04, very desireable neighborhood. Any responses are very much appreciated. thanks. Jim