Lease Option Potential
I have looked around and one property looks promising. It is estimated in value to be around $185,000 - $199,000 and the current owner owes around $138,000 in mortgage. What steps would I need to take to lease option this house (the owner said it is a possibility)? And I'm worried about qualifying for a loan in a year because that's a high mortgage that he owes still. Any feedback would help thank you!
Why is the owner selling?
Steps:
Understand why you want the home? Purchase, lease, primary residence
Find a motivated seller
Determine the FMV (Fair Market Value) of the property thru comparables
Determine the area FM rents
Evaluate the property's AS IS value
Perform your due diligence to determine,
cash flow, equity, forecasts, repair costs, etc.
Contact your mortgage broker to discuss pre-qualification, and receive confirmation letter. Discuss your offers and exit strategy.
Document / structure 3 offers
Document exit strategy - for the future
Present an offer, with confirmation letter
Post your results on TCI website!
Good luck,
Eric & Rosa
[addsig]