Sound like a good idea? lease option or ? - Posted by BatPro (Adam)

Posted by Reif on January 04, 1999 at 18:36:22:

I’m a new guy, so please forgive me for jumping in, but I’m trying to work my creative juices as well.

I still don’t think you’ve explained to us what the seller needs - except reduced rent. He says he has 112K “in” the place - is that what he expects out? Or more?

If it’s worth 115K, you surely can’t give him 112K, especially if after that he wants reduced rent.

If it’s worth 115K, even 100K seems a little steep if you are obligated to keep him as a tenant below market rates.

I think you really need to find out what he needs to get back from the sale - I don’t think it’s clear yet.


Sound like a good idea? lease option or ? - Posted by BatPro (Adam)

Posted by BatPro (Adam) on January 04, 1999 at 17:20:11:

More on the duplex…

I talked with the seller today he seems to want me to take out a mortgage. He wanted me to just rent for a few months then have it applied toward a purchase. I told him I wanted to write up an offer now before I rent for a few months. Is this lease option? He is not interested in providing financing. The duplex tax assessed value is $150,000. And he told me today that he has $112,000 into the place (thats what the land and improvements cost him). I am starting to think there isn’t much of an advantage of getting this place. I want to live in half for about a year then I would rent it out or sell it. The current seller wants reduced rent. I guess my idea now is to see about a mortage and then try to get a price out of the seller. The darn tax assessed value seems very high to me. I think the place is worth more like $115,000-125,000. I think I will offer him $100,000 or 110,000 and see what he says. Then if he says its worth more, I’ll say since I would be allowing him to stay at a reduced rent the price should be low.