How About A Castle??

louisb38 profile photo

I can lease option a biiig luxurious house,
4200SqFt, $20,000 down ,$2,850(all-in)?month and $255,000 in 2 years(total 275,000) , In prime condition, only thing that needs to be fixed is the pool cleaner. The house currently appraised at $318,000.
My question : How is my chance of finding someone to lease option it from me?
BTW, this house is in Weatherford,TX , close to Fort Worth.
Your opinions would be greatly appreciated

Comments(3)

  • pbodys1st May, 2003

    Hey louisb38,

    Sounds like you're placing your "ad" here. A no-no!
    How about "Beautiful home $300k rent to own." and list some amenities.

    But do it in a newspaper or mag...Simple

    Clif [ Edited by pbodys on Date 05/01/2003 ]

  • louisb381st May, 2003

    Sorry , I did not mean to offend anyone, I was merely stating the way I can get hold of this property. but as I'm rather new to REI I was wondering if there is a L/O market for such big houses in that price category.
    Excuse me if it came across as an ad .

  • KEA1st May, 2003

    louisb38,

    For starters, you never, ever want to enter a L/O deal without a tenant-buyer already lined up to take the property off your hands!! Especially if you have to come up with $20K down! The $2850/month sounds exceptionally steep to boot! Will the area support this amount of rent?

    Quite frankly, I think I'm missing something here. Your purchase option of $275K sounds fine against an appraisal value of $310+. However, I think you'll find it extremely difficult to find a T/B who can come up with a $20K+ down payment and afford monthly rent payments exceeding $2850/month! I've never heard of anyone like that who needs to "rent-to-own" in order to get their own place. Anyone who fits that profile can most definitely find someone who will lend them the money to buy their own house.

    I think you are probably dealing with another investor who is looking at you as their T/B. The numbers don't add up on this one. While there is some respectable equity in this deal, you should absolutely try to get the numbers in your favor. Try something like $10K down with monthly payments around $1,500. That's just my 2 cents worth.

    Hope this helps. Let us know how it turns out.
    [addsig]

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