Posted by Felix on July 15, 1999 at 20:11:50:
If the comps come out at $95K and he owes $100K, this doesn’t look like the best of deals. However, if you can lock in the $100K price for 5 or more years. It should be a good way to acquire a new home (assuming that this TH is in an area where property values increase or at least stay stable). Try to negotiate a long term lease automatically renewed annually.
Good luck!
Flex
Lease Option…I have a motivated seller - Posted by Maurice (Ca)
Posted by Maurice (Ca) on July 14, 1999 at 10:46:39:
Hello fellow investors:
I overheard a co-worker at my J.O.B. telling another co-worker that he’s tired of landlording & he wants out of his condo he’s renting out. Of course I went over to investigate further & get the details:
-3br/2ba 2 story condo. 1,200 sq. feet, 1car garage & a little yard. In great shape, just needs new carpet & in a great neighborhood.
-He owes $100k, and comps around $95,000: so no equity.
-His total monthly payments are $950(including association fees) & he rents it for $925 (and it could probably rent for $1,100).
-He’s not behind on any payments & the lease on the current tenant is up in September.
-He just wants out of landlording & doesn’t want any money out of it.
Well I just happen to be looking for a place of my own for my family & I to live & I’m thinking of lease-optioning this for myself. The monthly payments are higher than I’d like, but this is a deal I don’t want to pass up.
Since he doesn’t want to landlord anymore, I was thinking of offering:
No deposit; I’ll pay the monthly mortgage + association fees ($950); no rent credit; I’ll pay all maintenence; I’ll even change the carpet & paint it myself; 2 year option with the right to extend for the balance of the mortgage.
Let me know what you guys think & please do give suggestions.
Thanks,
Maurice