L/O My Own Home- Will It Work?
Okay-I am new to investing and have just read Peter and David's Book . I really enjoyed it and it got me to thinking about selling my own home. The end of a 3 month contract with my agent is approaching. These are the numbers- My question is- would this work for a L/O? Payoff is 92,000. We are asking 115,000. I am willing to accept 110K. The house is in a GREAT location with beautiful homes surrounding it. It needs a new roof immediately and a new H/AC unit soon. These last features are the ones that cause me concern. I can't really afford to fix them myself- that is why I am asking a low price. What do you think? :-?
Driven,
There is no question that you could sell your home on a lease option. Will it work? Well you'll have to tell us more.
1. Is the $115k the fair market value at present or is it the future market value?
2. Have you had a contractor give you numbers as to the needed repairs?
3. What are the comparable rent rates in your area for a like home? Based on this, can you rent for the mortgage payment or more?
4. What are you trying to accomplish?
There is certainly alot more to consider and I'm sure other posters will add to the little bit I gave you. Good Luck.
Dave
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"Opportunity is missed by most people because it is dressed in overalls and looks like work." (Thomas A. Edison)[ Edited by dealfinder on Date 06/16/2004 ]
We will also add that you MUST have an exit strategy to ANY RE deal.
So where are you going to live when the home is leased?
Will the "new" home's monthly payment stretch your budget if rent payments are not received?
Could you rent at a stronger monthly cash flow by renting EACH room (to students, divorced singles, etc.) instead of the whole house? (This works in our business model) "Room for rent...core utilities included...$525"
Lastly, you have MAJOR home repairs looming. Are you prepared to be a landlord and understand the minor and major risks/responsibilities?
Happy Investing,
Eric & Rosa
[addsig]