Lease Option In A Hot Market?
I've been taught that people use lease options when they can't easily sell a home. Does anyone here use lease options in a hot market? If yes, why?
Thanks,
MarleneM
I've been taught that people use lease options when they can't easily sell a home. Does anyone here use lease options in a hot market? If yes, why?
Thanks,
MarleneM
One reason is that you are not using a real estate agent to find a buyer so money can be saved. Another is that your income can be increased since you may also be getting option consideration on top of the lease income.
Sellers of homes that DON'T sell in a hot market are even that more frustrated (and motivated). Tax benefits (depreciation) without the headaches of traditional landlording, all the while collecting a nonrefundable Option payment, and selling at a premium price.
Thanks for responding.
Given that the San Diego market seems to be cooling off, and I can get this property at 10% down and a fixed 30 year rate 5.875, maybe I ought to go for a lease option, eh?
More info: I looked in the paper and didn't see many other lease option properties. Maybe I missed them, but I've been looking for a week now, and they are few and far between. I can't figure out why more sellers aren't doing lease options.
In any case, can anyone think of a reason for me NOT to do this?
Gratefully,
MarleneM