Posted by Bill on January 05, 2003 at 16:07:36:
How much would the lease payment be and how long would the lease term be?
Lease Option Rental Property - Posted by Becky
Posted by Becky on January 03, 2003 at 16:21:10:
I am in an LLC and we are new real estate investors, and could use some monthly income to help us with operating expenses, rehab costs, etc. I ran across an ad for a 3 unit duplex selling for $53,500 with current gross monthly rental income of $1,205. After taxes, insurance, mortgage payment, etc, I am looking at net income of $600/mo. The ad says “Lease Option”.
My questions are:
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Is a lease option like a land contract where I would get a deed, but probably have to put a larger amount down?
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If we were to buy it, what happens if we want to refinance it? Would we have the legal ability to do so?
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What are other concerns I should think about?
Thanks!!
Re: Lease Option Rental Property - Posted by Charles Clark
Posted by Charles Clark on January 06, 2003 at 01:09:00:
Hi Becky,
With a lease option, you are just leasing the property, except that until the end of the time period, you have first option to buy it. If you do the deal, have it written in the contract that either all or some of the money paid as lease goes towards the purchase price. Then that amount is normally considered the downpayment when you purchase.
Charles Clark
neiloans@hotmail.com