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Lease Option Opportunity?!?

jags profile photo
  • Contributed by
  • jags
  • Tuesday, July 22, 2003 @ 05:43 PM EDT
  • 4 Comments

Hi,

I've just begun getting into real estate. I found a motivated seller who lives in an affluent neighborhood. The house is selling for over $1 million. I wanted to focus on lease options as a beginning investor. There are no properties for rent in this neighborhood. Would this be a good property to lease option? If not, what would be the best way to approach this deal?

Thanks!

Comments(4)

  • no photo
    vanrijnr21st July, 2003

    Hi,

    Maybe it's different where you live, but down here the $1mln market isn't exactly a fast market. What I mean is be careful to get into a property that's gonna take a long time to sell / rent. In my area the market seems to concentrate around $100000-$150000 properties; they are going like hot cakes. Still, there are plenty opportunities to get in.
    So if the $1mln market is bustling where you're at, then more power to you!

    By the way, I really don't mean to discourage you, but the aforementioned would be my concern.

    Other than that, you really want to find out what the property is worth, and for which price you can sell it quickly. If you feel your research is good and the whole thing makes sense, then don't be affraid.

    Hope this helps a little.

  • no photo
    2000rock22nd July, 2003

    jags,

    Your a NEWBIE and your thinking about a 1M+ L/O...

    That is REALLY PMAs...

    I have been in REIs for a LooooooogTime and I would not touch this...

    ...UNLESS

    ....I could L/O for 500k ForMe!!!

    Almost NOBODY can afford THIS house!!


    ...WalkAway...my fellow REI


    ....as always,


    GoodInvesting, Rocky

  • no photo
    HoGiHung22nd July, 2003

    Just curious - can you afford a $6k monthly nut if you don't find a tenant/buyer?

    "4 little houses - then the hotel"

    While I keep an eye out for a big deal, I concentrate most of my efforts on many little deals for now.

    Good luck.

    Ho....

  • no photo
    jags22nd July, 2003

    Thanks for everyone's feedback, I didn't think this was a good lease option opportunity, but was wondering if there was a better approach to deal with a property that cost this much if any.

    I wasn't looking into purchasing it myself either.. I just thought it might've been an opportunity since I heard second hand that the owner is very motivated. Her husband died, the house is too big for her now, she doesn't want to deal with any agents, and is willing to finance.

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