How To Structure Deal
I have a rehabbed property ready for rent with a tenant with good income but poor credit. They are stuck with renting for next couple of years. Is this the right scenario for lease option. Somebody show me the numbers on this deal. House value of 80,000. Market rent of 750. My payment approx 450. How do you determine a future sales price? Option money? Rent Premium? What is my Rate of Return. Thanks for your input/patience.
Quote:
On 2003-09-10 01:14, blineak82 wrote:
show me the numbers on this deal. House value of 80,000. Market rent of 750. My payment approx 450. How do you determine a future sales price? Option money? Rent Premium? What is my Rate of Return.
You have room to work with, and can set your own terms.
First how much money do they have for a deposit / option money?
What has the appreciation rate been in your area? If it is appreciating 3% annually, calculate price accordingly. Or you can give option for "appraised value in 2005". This is less attractive to them, though.
Some people give rent credits, and some do not. There are a couple of threads out there with the whole debate. It really is up to you.
I hope that helps!