Lease Option Advice
I am looking to purchase 2 identical bldgs. Each is a 4-plex for a total of 8 units. Each is separately deeded with its’ own tax ID number.
List Price:
Prop A 340,000
Prop B 340,000
NOI
A. 29,580
B. 30840
Gross Rents
A. 37440
B. 38700
I have $50,000 cash and I plan to put down 10% on property A. I expect closing costs to be around $10k. My credit is between 720 and 800 among the 3 bureaus.
The dilemma is that the seller wants to sell both properties at the same time. However I do not have funds for a down payment on the 2nd property. Each property is separately deeded.
A third identical property down the street sold for 326,000 in May 2006.
My questions;
Does it make sense to tie prop B up in a lease option?
What terms should I add to the option?
Do you have boiler plate of a lease option that I can review?
Is there a better way to acquire these properties or structure this deal?
thanks,
Oak
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