Newbie Needs Help
I am about to complete the purchase of a new single family home in San Antonio TX. I live in California. Even if I put down 20 percent, the cash flow might still be a little bit negative. I found out it is very hard to find a good property management that cares about the property the way you would like them to.
So now I am thinking of doing a lease option. The idea is to find a tenant buyer to sign a long term lease with me. The higher rent I receive would create a better cash flow for me. And I think I should get a good pre-determined price for the house (since it is in TX) as well, and I don't have to worry about the regular maintenance of the house either.
Does this idea work? If so, how could I implement it effectively? Thank you so much.
Most people who are looking for a offer like that have bad credit and can not get a decent rate. So if you sell them the house at FMV. Then you will want want to require a small down payment 10,000.00 or so to cover your mortgage if they don' t come through. With an intrest rate a little higher then yours to make some income off of what they pay monthly. By doing it this way you get some of your down payment back plus a little income every month. An if they ever get behind on paying, you can forclose on them yourself and re structer the deal all over again to someone else. Good luck!!