Life Estate: doable or to many issues

[Chet Mazur]

I am looking at using a life estate, but am getting push back from my broker, and they are questioning how to price it.

Would a property being sole this way be priced by backing out the rental value of for the time until I dean from the FMV?

For this example assume FMV=500K, annual rental value 42K, 5% annual increase in rent, and I am going to live 10 yrs.

So I would sell for 750, but net 221,728.51, and have the right to life there for 10 yrs.

$ 42,000.00
$ 44,100.00	(42K*1.05)
$ 46,305.00
$ 48,620.25
$ 51,051.26
$ 53,603.83
$ 56,284.02
$ 59,098.22
$ 62,053.13
$ 65,155.79
$ 528,271.49	Rental value
750000-rent value
SALE PRICE=	$ 221,728.51

So would I walk w/ 221K and a place to live the rest of  my life?