Follow-up: What To Do With This Single Family House?
Greetings everyone! First time post in the lease-option forum. I posted my situation in a little more detail over in the beginner's forum, but I would like to get the opinion of you lease-option experts too please. Thank you in advance.
I am just about to close on a nice 3 bedroom 2 bath single family house. This is what the numbers look like:
150,000 purchase price
30,000 down
1,000 per month PITI
1,200 per month rental income
8% yearly ROI (2,400 profit / 30,000)
Of course this doesn't factor in price appreciation, but it's really not a very good return, especially considering possible tenant hassles or major property maintenance. So, what do you think? I could probably re-sell the house immediately for 170,000 or more. However, by the time I subtract realtor's fees and closing costs, I might make 10,000. What about lease-option? As hot as the market has been here at the beach, I could also let it ride. The thing is, I usually prefer multi-family from a ROI standpoint. But I do like this house. It's in a good area and really close to where I live. Should I stick with just a straight rental, should I outright sell it, or should I lease-option it? If so, exactly how does that work? Any thoughts? Thank you very much! Regards...
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