Lease option rookie

[Daniel Rubenstein]

Hi all, I just moved into Vegas about two months ago. I have been pushing off starting my RE investing until I have more money to invest. I dont see myself wholesaling, nor do i want to borrow from freinds and family if I dont have to. so I kind of wanted to wait until I have the money to buy a 10 unit mini apartment ecomplex. However, I have been researching lease options and it seems to be a way to get involved in real estate without borrowing and without laying out alot for a down payment, while still bringing in some cash. I wanted to know if anyone on here has had any experience in lease options, positive or negative, and how easily or hard it is to get the right houses with minimal risk- especially in vegas, as Id like to invest locally. Any advice at all would help a lot!!! Thanks!!!!

[Andy Chu]

A 10 unit apartment complex with a lease option screams disaster for the Vegas market. Keep in mind that we do not have too many units built after the 1960s and usually all in rough areas. However, let's say you do find the property. A lease option by definition means you are going to pay market rent + option money. Which means that even if you get all units rented out, you will still be bleeding cash.