I thought, wow, when I can get $1,000 a unit, I will be set.... but that may take forever...Then a unit would turn over or a lease would renew a year or two later, and I would study close the Craigslist listings and Property Manager websites (primary sources in my area for listings), finding the same size units in my neighborhood (usually the same street), and I would raise rents 25 bucks here, 50 bucks there to catch up with the market....

Sorry in advance for the long post...I have a family member with a home in Calgary Alberta that she would like to sell but given the hit to the housing market due to dropping oil and gas prices she doesn't want to sell now and take a loss, but doesn't she want to rent it indefinitely (the last time she did this she missed her opportunity to sell when the market was hot 2 years ago because she had tenants in place with a year long lease--well those same tenants renewed the lease in the spring and have now just broken the lease due to lay offs and leaving her high and dry)I proposed a lease option for her but need guidance on the numbers.It's a large luxury home in an A neighborhood but it's 33 years old and needs about $50,000 in work (paint, reinforce retaining wall, replace windows, etc etc)Her monthly payments are $2500.

If it is a couple of months, it may be worth it to clarify non-renewal and get her the move out packet and schedule for a walk through.

Folks either seem happy to take it off the market if they are not getting their asking price and rent it out instead.Here are the details of the deal- Seller has a fixed, closed interest rate of 2.89%, 4 year term with a renewal option for another 5 years- Whosesaler involved, asking for 23K.- Amount seller financed is approximately $376K- My PIT payment works out to $1700/month- The basement is about 40% developed.

The monthly income after expenses even with hard money loan is $580 and can be more once I renew the leases.

Do I ride out the 7 more months of getting paid 5-15 days late and then not renew?

At present I am writing this post with a strange mix of a heavy heart and bright eyes.I must admit that once again a thread composed of the thoughts of investors so further along in the industry than I, has left me in a bewildering mixed state of melancholy and renewed exuberance.It has been made abundantly clear to me in short order as well that in the ecosystem of REI I would be likened to something like a near defenseless sea cucumber who expels their insides when they get freaked out in a mostly vain and benign means of defending itself.

Is there any good reason to renew it?

Then big picture, under fifty bucks or so, I take a few lumps for the larger rent check and long term happy tenant....could be penny wise pound foolish to come down too hard as they may not renew.....if you are the helpful guy who saved the day, they may stay a few years..

They say they are happy and want to renew their lease but with only a $50.00 increase and locked in for 1 year.