High end SFR

[Zane O.]

We have been approached about 4 times in the last few months about high end SFR property and are currently discussing this with a couple looking to lease-purchase.

The property is a 4k sq. ft. home built in 2006.  No deferred maintenance issues of any sort.  The potential tenant is a professional couple in their mid-50s, their kids are grown and live elsewhere, and they have no animals.  They have leased a home for the past 6 years from a friend who has had great success with them.  We would handle management.

The costs would be:

- $425,000 financed at 4% for $17,000 annual

- $10,500 property tax

- $2,750 insurance

- $120 annual HOA

- $1,800 lease commission

- $1,800 M&R allowance

Total annual cost:  $33,970 annually or $2,830 monthly

+ 15% Profit:  $39,065 annually or $3,250 monthly

What are your thoughts or questions on a deal like this?