Rent to Own Deal Edmonton

[Ram Srinivasan]

Hi All,

I just had a R20 Deal land across my desk that I would seriously consider doing myself but at the moment, I am focused on closing the existing deals that I have on my plate. To that end, I'd like to assign  to another buyer. Please private message me if you are interested by Sunday January 17th. The reason for this tight timeline is that the landlord/owner of the property has reached out to me first and I have committed to getting him an answer ASAP.

As always, since this is forum/ community, I would love to see suggestions/pros and cons and advise you would like to offer.

Summary: As an investor, you are buying a $460,000 Edmonton property  with:

• Property located in the desirable neighborhood of Rutherford Heights SW.
• Landlord would like to sell to pull his equity out of the property for another business opportunity. 
• A rental agreement for 3 years of $2700 per month.
• An A+ tenant family who have lived and paid rent in the house for last 3 years, they have a strong six figure income, no debt. (No missed payments, verified with landlord). Tenant. Cannot qualify as no credit history has been built (pays cash and debit for all living expenses). Tenant is also professional trades person and willing to improve the property. You will have the opportunity to verify and conduct due diligence on the tenant as well
• Deal returns are  35%/yr and/or approx $25225 per year 
• Tenant option down payment total approx 5% ($23,000)
• Tenant is determined to purchase house in a 2 years time frame from you at a price of $480,000
• Aug 2015 appraisal confirms value to be $460,000 and landlord is willing to sell at the appraised value of TODAY if it checks in lower than $460,000
• Landlord also willing to hold back 5% second mortgage if required to minimize cash investment
• Looking to close before Feb 28, 2016 or sooner