Investor · Charlotte, NC · Member since 2015 · 192 posts · 126 votes
Got two scenarios I want to do some kind of lease option/purchase if it is workable. I want to know how you would structure the deal and if it makes sense. Both houses in a stable, golf-course community.
1. Friends house. On the market now for 215K, would sell for 200K. She currently owes 200K. She was renting it previously for only 1050/mo. I was thinking of doing a sandwhich lease/option. She is willing to not cover her mortgage of approx 1400/mo if I can get it sold. Was thinking a 3 year with her and then sell it on a 1 year with 1400-1500/mo, 210K purchase price along with some money down/option money.
2. My personal home. Owe 208K, could sell on market for 250K, thinking sell it on lease/option for 260K and lease for 1600/mo..my PITI is 1375/mo. What would be the option period, money down, option money?
If I had a bunch of cash, I would go purchase some small SFR or duplexes but I am just not in that position now after a recent divorce. Trying to be creative here and get something going. Thanks in advance!
Investor, Entrepreneur, Educator · Springfield, MO · Member since 2009 · 21k+ posts · 12k+ votes
10y
Well Brent, looks like numbers are coming right out of your exhaust pipe, (LOL) #1. what do you mean she is willing not to cover the mortgage if you get it sold.
#1, you're buying from her and leasing back to her? Are you going to subsidize her payment?
#2. Why do you think an option adds value to your home, you said it's worth 250, you just throw out another 10K for grins? LOL Not good! option prices are not arbitrary and you're going down the predatory dealing lending road. Sounds like you'll have Dodd-Frank issues as well. (legal issues)
Start reading about options from my recent posts here, everything has changed with options from the old days you might be hearing about. :)