Subject To Or Lease Option
I have a couple of houses that I am the landlord using a lease option contract. I am in the process of purchasing a new house for a new tenant. The idea is that she will have her credit turned around in 12 - 24 months (yeah right) and then refinance.
I have John's Sub-to book with the Contract of Sale of Real Property. The house is worth a bit more and I would like to protect myself more. I thought this may be a smarter option. I also like the simplicity of the L/O contract. Can someone give me some pros/cons for my scenario.
Thank you.
Throw some numbers our way. Maybe I can give some advice.
Are you asking which provides you, as the seller, better protection: Lease with Option to Purchase OR Contract For Deed (Land Contract)??
I am looking for the best protection. I am paying $146,000 for the house and am selling it back to the tenant for $168,000. Her monthly rent will be about $1500.
The reason I am concerned about protection is that I bought the house closer to FMV than I would like. I am probably only under by about $10K. Not bad, but if something happens to her I could chew that up quickly looking for another tenant and/or reselling it.