If the option is never exercised, then it is basically just a rental.Contract for deed you agree to pay the price of the home in monthly payments over a certain period of time.

That exercise might yield a value higher than $318K based on the $395K property, but there should be at least 2 other comps included which could pull the value down.The reality is that appraisers will compare properties based on how they look on paper (s/f, unit count, beds, baths, stories, parking, etc).  

Since it was a rental, the bank is not going to look at that the same way.Self-employment puts another spin on things and is sometimes difficult to finance.You definitely need a mortgage broker to help you as the option-exercise time period is usually a window and doesn't last forever.  

Hey Jay,Thus far I've heard and read of 'exercising their option to purchase' ratios within the 30% - 70% range.

If and when the tenant/buyer exercises their purchase option 100% of it will be credited that they put down.Hope this helps!  

But someone who is reaching out for someone to sell the house to, those would be a higher value lead.I currently have a real estate client in my local area that I generate leads for, so while my specialty is online lead generation, I'm looking for alternatives in my local area for my own deals, which is a good exercise for me.

I have had about 1/3 not exercise their Option for various legitimate reasons.

Prepare to be frustrated and don't get your hopes up too far as it may be a fruitless exercise.  

I have seenthis right of first refusal in many hoa doc.s, but have Never seen an hoa exercise it.  

Your LLC is you and you probably have a better chance of getting hit by space debris than a lender exercise the due on sale clause of a mortgage that is up to date.