Got The First One!
I've been lurking around on this forum for a couple weeks, reading books, courses and all the wonderful advice here. Thanks for all the great posts and the pros who lend us n00bs help.
I just signed an agreement on my first investment L/O (48 months). I purchased my current home w/ a L/O a few years ago.
Anyways, the prop details are:
Price: 166,900
CMV: ~175,000
Lease payment: 995
Sec Dep: 995
No earnest money was written in but I expect my lawyer to scold me on that and tell me to offer at least 100 bucks. I dunno....
I am advertising the home for 4k down 1150 a month, local rents will easily handle that.
This isn't as new of a property as I would have liked, (I am working on 2 new contstructions also) but it was recently updated and has been taken great care of. I have copies of the inspection reports from last year when the property was bought. And upon my inspection couldn't find a single crack in the walls or foundation, no moisture buildup in the crawlspace, all in all this is a really nice property in a decent part of town.
Does any of this sound like it might present me with problems when I try to sub-lease? I am concerned about finding people w/ downpayments but 4k isn't much of a stretch for most people anymore. I have 3 escape clauses built into my contracts, including an unconditional right to terminate at any time so I feel confident that I've limited my exposure.
So anyways, it's kind of a flaky question but I thought I would throw the details out there to see if anyone notices red flags.
Thanks again to everyone for the great advice on these forums!
Never pay a security deposit. That will hurt you if it ever goes to court. Always call it Option Consideration.