Seller Willing to do Lease Option...

[Kendra Williams]

Hi BP, I have a seller who is willing to do a lease option. He, through his realtor, actually brought it to me. I'm wondering how this will benefit me and if it's the best thing to do in my situation. It's a 4-plex that is within a few miles of where I live. There are 3 one bedrooms and 1 two bedrooms. The monthly rent rolls total $2100. The owner usually pays all the utilities. The taxes are $2943.90. His selling price is $139,500. I will offer $125,000. He owns is free and clear and wants to get rid of it. It's assessed at $150,000 through the county site, it was $190,000 last year...and I know it's not the best estimate. I would think the $150K is low based off of other properties the same size. Please give me some feedback. I go to meet with the realtors tomorrow and this will be my first investment deal.

I would like to use the potential equity I acquire to make more deals. Before I start that please give me feedback on the numbers, any more insight you have on lease options is also greatly appreciated.

Thanks,
Kendra