Help Me Out On Lease With Option To Purchase
I live in an area where I think there are lots of people who have credit problems. I am in the process of seling this house that we just got done fixing up. Since I am in an area where people don't make lots of money how would I structure a lease with option to purchase. Here are a few numbers. I want 58,000 for the property. The mortgage payment is 364 per month, taxes are about 800 per year, insurance is 220 per year. Can someone please give me an idea on how you would do this deal? Do you do rent credits? I would apprecaite a break down of different terms on how you would structure this deal. Thanks.
First find out what the property will actually sell for. Get comps. Then what will the house bring for rent in your area. Will it support $400,$500,$600. It looks like your PITI is $450/mo. I would find out what the appreciation rate is in that area and add that to your comp. Say 5% per year. Maybe more mabye less. Ask for a down payment of say $3000-to $6,000. Then get the max for rent that you can get. I wouldn't give any rent credit and look to help out somebody that needs a house but has bad credit. Make the L/O for 1,2,3,4,5, years. If they default and leave then you get to start all over again.