Thnking O F Doing A L/o With My Tenants
i am thinking about doing a lease option with my renters for a 3 or 5 year period. how much is the usual for rent credit toward the puurchase price of the house. this would be my first time so i have a lot of questions and looking for advise. here are my numbers i have been thinking up on this deal: i owe $86,700 thinking of refi to $97,000 to have $10,000 to use on other deal. the fmv on the house is around $107,000. i can get 2-$3000 down from tenants and charge rent of $900 -$950 month. please give advise on how to set the deal up and how to contract it. i am not sure yet but my payments should be between 800-850 month w/ taxes and insurance included. also any thoughts on the insurance and taxes: who should pay them me or the renters? thank you for all your help. my email is samashley @netzero.com if needed :-?
second idea on this whole deal: the tenants realy want to buy the house but right now their credit wont allow them to. the original selling price was $97,500. they are open to just about what ever i through at them so i was thinking of having them up their lease for another 1-2 years then at that time their credit should be good enough to buy the house then i could sell it to them for $110-$115,000 or maybe even more. then i would not have to give them rent credits toward the purchase. i could also refi the original $86,700 that i owe to get lower payments and charge $850- $900 monthly and realise a little monthly cash flow( not much but some). sorry so long winded but all advise is greatly appreciated.