Newbie Lease-option Questions
I have an owner who moved to another city and is now paying two mortgages. He had to move while he was renovating his house. He will accept my L/O plan (I plan to sub-lease and transfer the option). Here's the stats:
FMV before repairs: ~135k
Repairs: ~3k
FMV after repairs:~160k
Local rent value: 900/mo.
His PITI: 937/mo
I plan to offer him 135k and 900/mo and I'll do the repairs. Questions:
1. Should the house be inspected before I do the deal? The house is in the middle of partial renovation, of sorts. Doesn't he have to have the house inspected anyway for someone to buy it in its partially deconstructed state? Is it fair to charge him with inspection costs?
2. Can I conduct a title search without paying a title company $350 to do it? Can I go down to the recorder's office (or where-ever) and do it myself?
3. He's has a $25k lien against the property. I don't know what this lien is for, whether he bought a car or it was just to pay for the house. Does it matter what the lien was for and must it be paid before someone (my tenant) can buy the house? If it must be paid, how do I ensure the owner pays the lien when my tenant buys the property?
Thanks all.
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