Want To LO A Home For Myself...need Creativity!
Hey gang...I have come across a great great deal of a house that my fiance and I just love. It is well below what it is worth. A tad more than we need but the potential with this home is awesome. Here is the deal: It is being lease optioned out by an investor. House price is $266,000. Huge house, beautiful design, on 2 acres over looking a fantastic stream running through property. Massive unfinished basement. Investor wants to LO it out at $1595 a month. We can swing that, IF we are able to rent out her current home (cute starter home, 6 months old, 3/2.5, new community, fenced backyard, piti is $900 ). We should be able to...rents in the area are comparable.
Heres the dilemma...seller intially wanted 3-5% down as a non-refundable deposit that would go towards the purchase if we bought the house. $100 of the rent would also go towards it. We simply cant come up with that huge of a downpayment. I expained that to them and said thanks for their time. He has called back, and I realize he really wants to make it work. I am an onsite agent that is waiting on a new project to begin....no real income coming in currently, but should be excellent in 4 months or so. I have no debt, so its no biggie. Doing odd jobs with a landscaping company to pay small bills.
He has said to rent it from him for the time being by putting 1 months rent down (1595) and then moving in. So roughly $3200 to move in. Then we can enter into a LO in the future. We do not have much extra right now, and also, I am currently in the process of doing a SS, so any extra funds are gonna need to go that direction.
Is there something creative I can present to him to start renting this place out so that we can pretty much lock it down for a future purchase without a large deposit? We really dont want to lose it, and I know he wants to have a tenant in there...any thoughts from LO landlords out there??
Sounds like this guy is motivated. How sure are you about the price? I'd offer to stick another $5,000 or $10,000 on the price to cover the option fee (thereby moving the option fee to the back end). I'd be reluctant to move in without the option agreement if you really want to do the option deal. Once your in there the landlord gives you the option only if prices have gone down.
Why not just sell the fiance's house and use the profits from that sale to fund this deal. And at least think about whether you want to just buy it outright rather than lease/option.
Can you afford to buy a 300k house? Sounds like your employment is sketchy and you do not have the money for the downpayment. Talk to a mortgage broker and find out if you would ever qualify to buy this house.
Brenda