How Much Should I Charge Monthly?
How much should I charge monthly if I do a Lease Option?
The property is a condominium. On going lease rate of the properties with the same size is $975. Of this $299 goes to the owners association. I need about $950 to pay my PITI + owners association monthly. If I do the lease option, a percentage of it should be credited back towards the purchase. Can someone give me an estimate? This is my first investment ever. Please help.
Thank you in advance for any comments.
what is the going rate in your area.
Sorry, I am new at this, so I don't know what you mean by the going rate. Please explain more detail.
find out how much the other properties are going for, then base your pmt from that, if you only get 975 and 950 pays everything that is fine they are paying it not you after the loan is paid then the rest goes in your pocket.
If you are doing a lease option try to get 4-5% down as option amount/security, as 80% of the time they can not purchase.
As far as monthly you should get at least $75 to $200 over your cost. At least that (125-200) is what I have aimed for. A $25 difference can be very tight when you have maintenance, plan on being negative.
The good thing is with lease option you can raise the price up based on them being able to buy, and do some gimmics like charge $150 more then standard, but allow $50 /mo of it to go toward purchase price. That makes it easier to swallow for them.
coolstuff41005,
I hope I am NOT going to RAIN on your PARADE...
...or maybe I can't understand your numbers...
HereGoes...
"The property is a condominium. On going lease rate of the properties with the same size is $975."
The units like the one you are buying rent for $975.00...
"Of this $299 goes to the owners association."
$975.00 -$299.00 = $676.00
"I need about $950 to pay my PITI + owners association monthly."
Your total mortgage payment including the assoc. fees = $950.00
"If I do the lease option, a percentage of it should be credited back towards the purchase. Can someone give me an estimate?"
Forget that for now....
"This is my first investment ever. Please help."
Are you really planning to rent with, what I figure is, ONLY a $25.00 positive CashFlow??!!...
PLEASE...ThinkTwice....PLEASE
I just don't want to see you get SCREWED!!
You can find more PROFITABLE FISH TO FRY....
...and taste alot BETTER!!
....as always,
GoodInvesting, Rocky