Rent To Own Option?
Hi I currently have a house in the San Francisco Bay area And am thinkin of creative ways to sell the property.
I purchased a house 2 years ago for 400K
It has appraised for 450K.
I have approximate 20% equity in the property. And could easily sell the property for ~430K. However with a realtor with 6% most of my equity would be gone.
So, I thought up a creative alternative. Setup a contract where I would setup a Rent to own option.
My mortgage payment is 2K/month. The going rent in the area is between $1700 - $2000. However to make this work I would need at least $2500/month
to break even.
What do you folks think about setting up a deal with a rent to own option for $2700/month for 3 years with an option to buy after that time. And sell it for over the appraised value, say 460K.
Could I pull this off?? Would it make sense? Unfortunately the way prices are over here, there is no way to rent out without losing money.
Thanks,
Andy
For Sale By Owner
What is stopping you from advertising your home in the newspaper and showing it yourself? There are even sites where you can put it in the MLS for $500.
It might make a $20k plus difference.
Good luck.
Ok... My first question is why wait? Based on the information you've presented...
You bought it for 400k.
It appraises for 450k, right?
You HAVE to rent it for 2500 to break even.
Going rate is 1700-2000 (Alert! Alert!) <- This was a message from your Emergency CASH LOSS system!!!
And, so you ask:
What do you folks think about setting up a deal with a rent to own option for $2700/month for 3 years with an option to buy after that time. And sell it for over the appraised value, say 460K.
"HEY! It's worth whatever someone else is willing to pay for it!"
Could I pull this off?? "I don't know, can you?"
Would it make sense? "THE ONLY CATCH, is dependant on what the AVG appreciation is... That way you can offset your SHORT TERM losses w/ LONG TERM GAINS" Assuming you have the mula to do it..... Personally, I wouldn't... (450k can go to 400k pretty quick with the wrong renter) But, fortune is made over time, not overnight... Contrary, to popular belief!
Unfortunately the way prices are over here, there is no way to rent out without losing money. "Sorry, but I don't buy this for one second!"
[addsig]