Good News..Need Feedback!
I am closing a short sale on the 28th of this month. I'm buying it for $109,200, appraised at $136,000 and 2 other comparable properties sold within the last 6 months for $144,500 and $141,500. My mortgage payment is going to be roughly $450 (interest only) and I have 2 renters that will pay me $999. My repairs are only $3,600 and closing cost of $3,300. Today I found a person interested in a lease option that would pay me a $4,550 non-refundable deposit and $799 per month. My sale price to her during or before the expiration of the agreement would be $135,900. I also have a no seasoning loan so I was thinking about doing the repairs and then selling it for a quick sale of $129,900. So I really have three exit strategies. What do you think would be the best route to take?
In my opinion, take the route that results in the fastest turnaround.... in other words, take the money and run.
So you're saying do the lease option?
I don't there is any true decision to be made here; take the lease option - even better if you can add your closing costs to the loan.
Think about setting your price to increase every 12 months - $135900 for 12 months; then $138,600 from 13 to 24 months (a 2% increase); just explain the current value is $141k +/- and going UP - nearly ANYONE making a $800 a month payment ON TIME will easily qualify for a loan to excersize a lease option after 12 months.
Please let us know what you decide!
In my opinion, I would do the repairs, market it to sell fast, sell it, then take the money and onto your next deal (which you should be working on now).
I have 2 other deals in the pipeline and have even taken on a few clients that I'm negotiating short sales for. From my experience I have learned that the best deals are those without a lot of obstacles to overcome such as multiple mortgages, unmotivated sellers or lenders, etc.