Inflated Values
I know building in profit in lease options is a good thing. What if you have an agreed upon price to sell the house at the end of say 3 yrs. Say 20% above what fair market price was 3 years ago. Somewhat realistic I think, but say the market hasn't increased that much and has been flat. Comps are relatively close to when you bought it. Do you change the price in the end if they cannot get a loan? What do you do for an out to save yourself hassle.? The reason why I ask is the area that I invest in got caught up in
1 of those investor scams where they built up the price of a neighborhood with false apprasials and the county had to come back ( with in 3 yrs) re evaluate the properties and dropped tax values and home values down 15% to 20%. Alot of people went to jail and a great neighborhood went from 235,000 ot 185,00 tax value in 2 years.
You as a seller always have the option to allow your buyer to purchase at a lower price, or you could extend the contract at no additional charge to allow the property time to recover its value and be worth the agreed upon price. There would be no crime in a compromise.
I guess your needs, wants, and desires at the time and your sense of "right" and "maybe not as right" should dictate your decision.
Jeff